Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A machine costing $213,000 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
A machine costing $213,000 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 485,000 units of product during its life. It actually produces the following units: 122,200 in 1st year, 124,300 in 2nd year, 121,100 in 3rd year, 127,400 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate-this difference was not predicted. (The machine must not 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.) Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under Straight-line depreciation. Straight-Line Depreciation Year Depreciation Expense 1 2 3 4 Total $ 0 Complete this question by entering your answers in the tabs below. Straight Line Production Units of DDB Compute depreciation for each year and total depreciation of all years combined) for the machine under Units of production. Units of Production Depreciable Year Depreciation Depreciation Units per unit Expense 1 2 3 4 Total $ 0 Complete this question by entering your answers in the tabs below. Straight Line Production Units of DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under Double-declining- balance. DDB Depreciation for the Period End of Period Beginning of Depreciation Depreciation Accumulated Expense Depreciation Book Value Year Period Book Value Rate 1 % $ 2 % % OOOO 3 4 % $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 18 - Significant Accounting Policies And Changes In Them

Authors: Kate Mooney

3rd Edition

0071719407, 9780071719407

More Books

Students also viewed these Accounting questions