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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: 123,000 in 1st year, 122,700 in 2nd year, 121,200 in 3rd year, 126,100 in 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.) Answer is complete but not entirely correct. 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 each Units of production. Year 1 2 3 4 Total Units of Production Depreciable Depreciation Units per unit 123,000 $ 0.40 122,700 $ 0.40 L 121,200 $ 0.40 / 126,100 X $ 0.40 493,000 Depreciation Expense $ 49,200 49,080 48,480 50,440 X $ 197,200
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