Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A machine costing $210,400 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory

image text in transcribed

image text in transcribed

image text in transcribed

A machine costing $210,400 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 486,000 units of product during its life. It actually produces the following units: 123,100 in Year 1,124,400 in Year 2, 120,100 in Year 3, 128,400 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate--this difference was not predicted. (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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Straight Une Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation Straight-Line Depreciation Year Depreciation Expense $ 107,100 2 54,200 3 34.700 28,100 Total $ 224 100 1 A machine costing $210.400 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 486,000 units of product during its life. It actually produces the following units: 123,100 in Year 1, 124,400 in Year 2, 120,100 in Year 3, 128.400 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate--this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value) 142 points 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 not complete. 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 Units 1 2 Units of Production Depreciable Depreciation Depreciation Units per unit Expense 107,100 $ 0.40S 42,840 54,200 $ 0.40 21.60 34,700 0.40 28,100 $ 0.40 1,124 $ 224,100 $ 79,524 123, 100 124.400 120.100 128.400 3 13.880 4 Total G HE 2,120,100 in Year 3, 128,400 in Year 4. The total number of units produced by the en of Year 4 exceeds the original estimate-this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.) -2 ants 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 not complete. Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDE Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining balance. DDB Depreciation for the Period End of Period Beginning Year of Period Depreciation Depreciation Book Accumulated Book Rate Expense Value Depreciation Value 11 S 0 2 % 0 3 % D 4 * 0 Tots $ 0 Andrei

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions