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A machine costing $211,000 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory on January 1. The
A machine costing $211,000 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 485,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 122,800 in Year 2, 120,600 in Year 3, 128,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this 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. Note: 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 Double declining balance Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance. Double-declining-balance Depreciation for the End of Period Period Year Beginning of Period Book Depreciation Rate Depreciation Expense Accumulated Book Value Depreciation Value Year 1 % $ 0 Year 2 % 0 Year 3 % 0 Year 4 % 0 Total $ 0 A machine costing $211,000 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 485,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 122,800 in Year 2, 120,600 in Year 3, 128,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this 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. Note: 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 Double declining balance Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Straight-Line Depreciation Depreciation Year Expense Year 1 Year 2 Year 3 Year 4 Total $ 0 A machine costing $211,000 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 485,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 122,800 in Year 2, 120,600 in Year 3, 128,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this 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. Note: 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 Double declining balance Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Units of Production Year Units Depreciable Units Year 1 123,000 Year 2 122,800 Year 3 120,600 Year 4 128,600 Total Depreciation per unit Depreciation Expense $ 0
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