Question
A machine costing $210,200 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 $210,200 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 483,000 units of product during its life. It actually produces the following units: 122,400 in 1st year, 124,000in 2nd year, 120,000in 3rd year, 126,600in 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.)
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.)
Straight-Line Depreciation
Units of Production
DDB Depreciation for the Period|End of Period
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