Question
A machine costing $209,800 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory on January 1. The factory
A machine costing $209,800 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's 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: 122,800 in 1st year, 122,400in 2nd year, 120,000in 3rd year, 126,800in 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.)
Required:
Compute depreciation for each year (and total depreciation of all years combined) for the machine under each
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