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A machine costing $207,800 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory on January 1. The
A machine costing $207,800 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 122,000 in Year 1, 123,700 in Year 2, 121,000 in Year 3, 120,300 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. Note: 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 Double declining balance 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 Year 1 Year 2 Year 3 Year 4 Total Straight Line Units of Production > A machine costing $207,800 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory or January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 122,000 in Year 1, 123,700 in Year 2, 121,000 in Year 3, 120,300 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 Note: 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 Double declining balance Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Units of Production Year Units Depreciable Units Year 1 122,000 Year 2 123,700 Year 3 121,000 Year 4 120,300 Total Depreciation per unit Depreciation Expense Straight Line Double declining balance
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