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A machine costing $208,600 with a four-year life and an estimated $15,000 salvage value is installed in Luther Companys factory on January 1. The factory
A machine costing $208,600 with a four-year life and an estimated $15,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 484,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 124,300 in Year 2, 120,000 in Year 3, 126,700 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.)
A machine costing $208,600 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 484,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 124,300 in Year 2, 120,000 in Year 3, 126,700 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis difference was not predicted. (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. Units of Production Units of Straight Line 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 48,400 48,400 48,400 48,400 Total $ 193,600 Straight Line Units of Production > A machine costing $208,600 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 484,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 124,300 in Year 2, 120,000 in Year 3, 126,700 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. (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 Units of production. Year Units 123,000 124,300 120,000 126,700 Depreciable Units 123,000 124,300 120,000 116,700 $ 484,000 Depreciation per unit $ 0.40 $ 0.40 $ 0.40 $ 0.40 Units of Production Depreciation Expense $ 49,200 49,720 48,000 46,680 $ 193,600 Total A machine costing $208,600 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 484,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 124,300 in Year 2, 120,000 in Year 3, 126,700 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. (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 Double- declining-balance. End of Period Year Accumulated Depreciation Book Value 1 DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Rate Value Expense 50 % 50 % 50 % 50% $ 2 3 Total 0Step by Step Solution
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