Question
A machine costing $209,600 with a four-year life and an estimated $18,000 salvage value is installed in Luther Companys factory on January 1. The factory
A machine costing $209,600 with a four-year life and an estimated $18,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 479,000 units of product during its life. It actually produces the following units: 121,800 in Year 1, 124,000 in Year 2, 119,800 in Year 3, 123,400 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.)
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Straight-Line Depreciation Depreciation Year Expense 1 2. 3 4 Total Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Units of Production Depreciable Depreciation Units Year Units Depreciation Expense per unit 1 2 121,800 124,000 119,800 123,400 3 4 Total Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance. End of Period DDB Depreciation for the Period Beginning of Depreciation Period Book Depreciation Rate Expense Value Year Accumulated Depreciation Book Value 1 % 2 % 3 % 4 % TotalStep by Step Solution
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