Question
A machine costing $208,800 with a four-year life and an estimated $16,000 salvage value is installed in Luther Companys factory on January 1. The factory
A machine costing $208,800 with a four-year life and an estimated $16,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 482,000 units of product during its life. It actually produces the following units: year 1, 122,100; year 2, 124,200; year 3, 121,600; and year 4, 124,100. The total number of units produced by the end of year 4 exceeds the original estimatethis difference was not predicted. (The machine must not 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.)
1) Strait Line Depreciation
2)Units of Production
3)Double declining method
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