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A machine costing $207,000 with a four-year life and an estimated $15,000 salvage value is installed in Luther Company's factory on January 1. The factory
A machine costing $207,000 with a four-year life and an estimated $15,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 480,000 units of product during its life. It actually produces the following units: 122,800 in Year 1, 124,000 in Year 2, 121,100 in Year 3, 122,100 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Straight-Line Depreciation Year Depreciation Expense 1 2 3 Total 4 $ Year Units 1 122,800 2 124,000 3 121,100 4 122,100 Total Units of Production Depreciable Units Depreciation per unit Depreciation Expense $ 0 Year 1 2 3 4 Total DDB Depreciation for the Period Beginning of Period Book Value Depreciation Rate Depreciation Accumulated End of Period Book Value Expense Depreciation % $ 0 % 0 % 0 % 0 $ 0
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