Question
A machine costing $211,600 with a four-year life and an estimated $16,000 salvage value is installed in Luther Companys factory on January 1. The factory
A machine costing $211,600 with a four-year life and an estimated $16,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 489,000 units of product during its life. It actually produces the following units: 121,600 in Year 1, 123,200 in Year 2, 121,500 in Year 3, 132,700 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.)
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production.
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DDB Depreciation for the PeriodEnd of PeriodYearBeginning of Period Book ValueDepreciation RateDepreciation ExpenseAccumulated DepreciationBook Value1%$02%03%04%0Total$0
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