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: 122,000 in Year 1, 122,800 in Year 2, 121,200 in Year 3, 129,000 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. (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 DDS Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production Year Units Year 122,000 Units of Production Depreciable Depreciation Depreciation Units per unit Expense 122,000 0.39 $ 47.580 122.800 039 47,892 121,200 $ 47.268 1 Year 122.800 12 Year 121,200 0.39 3 Year 120,000 50,310 0.39 4 120,000 $ 495,000 15 $ 193,050 Total (Straight Line DDB 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: 122,000 in Year 1, 122,800 in Year 2, 121,200 in Year 3, 129,000 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. (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. Units of Production DDB Straight Line 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 Accumulated Book Value Book Value Rate Expense Depreciation Year 1 % Year 2 Year 3 0 Year 4 0 Total 0 X 0
