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A machine costing $209,200 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 $209,200 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 483,000 units of product during its life. It actually produces the following units: 121,500 in 1st year, 123,800 in 2nd year, 120,100 in 3rd year, 127,600 in 4th year. 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)
Problem 10-2A Depreciation methods LO P A machine costing $209,200 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 483,000 units of product during its life. It actually produces the following units: 121,500 in 1st year, 123,800 in 2nd year, 120,100 in 3rd year, 127,600 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate-this difference was not predicted. (The machine must not be depreciated below its estimated salvage value) 1.92 points Print Required: References 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 Straight Line DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Straight-line depreciation. Year Prev 20, 13111 Next > #2
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