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A machine costing $209,000 with a four-year life and an estimated $15,000 salvage value is installed in Luther Company's factory on January 1. The
A machine costing $209,000 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 485,000 units of product during its life. It actually produces the following units: 122,700 in Year 1, 123,400 in Year 2, 120,000 in Year 3, 128,900 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 Units of production. Units of Production Year Units Depreciable Units Depreciation per unit Depreciation Expense Year 122,700 121,700 $ 0.40 $ 48,680 1 Year 123,400 123,400 $ 0.40 49,360 2 Year 120,000 120,500 $ 0.40 48,200 3 Year 128,900 119,400 $ 0.40 47,760 4 Total 485,000 $ 194,000 < Straight Line DDB > *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
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