Question
A machine costing $212,600 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory
A machine costing $212,600 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 484,000 units of product during its life. It actually produces the following units: 122,700 in year 1, 124,000 in year 2, 119,900 in year 3, 127,400 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.)
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