A machine costing $209,800 with a four-year life and an estimated $19,000 salvage value is installed in
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A machine costing $209,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 121,600 in Year 1, 123,700 in Year 2, 119,900 in Year 3, 121,800 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.)
End of Period DDB Depreciation for the Period Beginning of Depreciation Depreciation Period Book Rate Expense Value Year Accumulated Depreciation Book Value 1 $ 0 0 2 2 3 % 4 % Total 0
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Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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