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A machine costing $212,200 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory on January 1. The
A machine costing $212,200 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 488,000 units of product during its life. It actually produces the following units: 122,100 in Year 1, 124,400 in Year 2, 121,300 in Year 3, 130,200 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.) 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 Year 1 $ 122,100 Year 2 124,000 Year 3 121,300 Year 4 130,200 Total $ 497,600
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