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A machine costing $211,400 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 $211,400 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 486,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 122,900in Year 2, 120,700in Year 3, 129,400in 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.)
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