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A machine costing $212,000 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory
A machine costing $212,000 with a four-year life and an estimated $18,000 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: 123,200 in Year 1, 123,600 in Year 2, 120,500 in Year 3, 127,700 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. Units of Production Depreciation Expense Year Depreciable Units Units 2 123,200 123,600 120,500 127,700 Depreciation per unit 0.40 0.40 $ 0.40 $ 0.40 Total 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 DDB Depreciation for the Period Beginning of Depreciation Depreciation Period Book Rate Expense Value Year Accumulated Depreciation Book Value 0 Total $ 0
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