A machine costing $211,000 with a four-year life and an estimated $19,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 480,000 units of product during its life. It actually produces the following units: 122,300 in Year 1, 123,700 in Year 2, 120,500 in Year 3, 123,500 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.)
A machine costing $211,000 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 480,000 units of product during its life. It actually produces the following units: 122,300 in Year 1, 123,700 in Year 2, 120,500 in Year 3, 123,500 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.) 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 Straight-line depreciation. Straight-Line Depreciation Depreciation Year Expense 1 $ 48,000 2 48,000 3 48.000 4 48,000 192,000 Total A machine costing $211,000 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 480,000 units of product during its life. It actually produces the following units: 122,300 in Year 1, 123,700 in Year 2, 120,500 in Year 3, 123,500 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.) 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 per unit 1 Units of Production Depreciable Depreciation Depreciation Units Expense 122,300 $ 0.40 $ 48.920 123,700 $ 0.40 49,4801 120,500 $ 0.40 123,500 $ 0.40 490,000 $ 196.000 122,300 123.700 120,500 123.500 2 3 48,200 49,400 4 Total A machine costing $211,000 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 480,000 units of product during its life. It actually produces the following units: 122,300 in Year 1, 123,700 in Year 2, 120,500 in Year 3, 123,500 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis 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.) 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 Double- declining-balance. End of Period Year Accumulated Depreciation Book Value DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Rate Value Expense $ 211,000 % % % % 1 2 $ 211,000 0 3 0 4 0 Total $ 0
