A machine costing $212,600 with a four-year life and an estimated $15,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life. It actually produces the following units: 122,800 in Year 1,123,100 in Year 2, 120,800 in Year 3, 137,300 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 Units of production Year Depreciation Expense Year 1 Year 2 Year 3 Year 4 Total Units of Production Units Depreciable Depreciation Units per unit 122,800 122,800 $ 0.40 123,100 123,100 $ 0.40 120,800 120,800 $ 0.40 137,300 127,300 $ 0.40 494,000 $ 0 A building is acquired on January 1 at a cost of $1,000,000 with an estimated useful life of ten years and salvage value of $90,000 Compute depreciation expense for the first three years using the double-declining balance method. (Round your answers to the nearest dollar.) End of Porioa Depreciation for the Period Beginning of Period Book Depreciation Depreciation Rato (%) Value Expense Accumulated Depreciation Annual Period Book Value First Year Second Year Third Year Equipment costing $19,200 with a 8-year useful life and an estimated $3,200 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 4,000 units of product during its life. It produced 600 units in the first year. Record the journal entries for equipment depreciation for the first year under straight-line, units-of-production, and double-declining- balance View transaction list View journal entry worksheet X Debit Credit Record depreciation for the first year under straight-line. B Record depreciation for the first year under units-of- production. C Record depreciation for the first year under double- declining-balance. On October 1, Organic Farming purchases wind turbines for $330,000. The wind turbines are expected to last six years, have a salvage value of $39,000, and be depreciated using the straight-line method. 1. Compute depreciation expense for the last three months of the first year. 2. Compute depreciation expense for the second year. 1. Straight-line depreciation for the last three months of the first year 2. Straight-line depreciation for the second year Garcia Company owns equipment that cost $84,000, with accumulated depreciation of $44,400. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $52,400 cash, (2) $39,600 cash, and (3) $34,500 cash. View transaction list > A Record the sale of equipment assuming Garcia sells the equipment for $52,400 cash. Record the sale of equipment assuming Garcia sells the equipment for $39,600 cash, $52,400 c Record the sale of equipment assuming Garcia sells the equipment for $34,500 cash. Credit
