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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: 123,100 in Year 1, 122,800 in Year 2, 121,400 in Year 3, 125,700 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis difference was not predicted. Note: 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.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Year Depreciation Expens Year 1 Year 2 Units of Production Units Depreciable Depreciation Units per unit 123,100 123,100 122,800 122,800 121,400 121,400 125,700 $ 367,300 Year 3 Year 4 Total $ 0 Straight Line Units of Production DDB 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 Depreciation Period Book Rate Expense Value Year Accumulated Depreciation Book Value Year 1 % $ 0 Year 2 % 0 Year 3 % 0 Year 4 % 0 Total $ 0
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