Question
A machine costing $210,000 with a four- year life and an estimated $20,000 salvage value is installed in Calhoun Company's factory on January 1. The
A machine costing $210,000 with a four- year life and an estimated $20,000 salvage value is installed in Calhoun Company's factory on January 1. The factory manager estimate the machine will produce 475,000 units of product durig its life. It actually produces the following units: year 1, 121, 400; year 2 , 122, 400; year 3 119,600; year 4, 118,200. The total number of units produced by the end of the year 4 exceeds the original estimate - this difference was not predicted. (The machine must not be depreciated below its estimated salvage value).
Prepare a table with the following column heading and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.
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