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A machine costing $212,800 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The
A machine costing $212,800 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 482,000 units of product during its life. It actually produces the following units: 121,600 in Year 1, 124,100 in Year 2, 120,700 in Year 3, 125,600 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 Year 2 Year 3 Year 4 Total $ 0 < Straight Line Units of Production > < Prev 3 of 13 Next > A machine costing $212,800 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 482,000 units of product during its life. It actually produces the following units: 121,600 in Year 1, 124,100 in Year 2, 120,700 in Year 3, 125,600 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. Units of Production Year Units Depreciable Units Depreciation per unit Depreciation Expense Year 1 121,600 Year 2 124,100 Year 3 120,700 Year 4 125,600 Total $ < Straight Line DDB > < Prev 3 of 13 Next > A machine costing $212,800 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 482,000 units of product during its life. It actually produces the following units: 121,600 in Year 1, 124,100 in Year 2, 120,700 in Year 3, 125,600 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 Double- declining-balance. DDB Depreciation for the Period End of Period Beginning of Year Period Book Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value Value Year 1 % $ 0 Year 2 % 0 Year 3 Year 4 Total % 0 % $ 0 < Units of Production DDB > < Prev 3 of 13 Next >
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