Question
A machine costing $213,000 with a four-year life and an estmated $17,000 salvage value is installed in Luther Company's factory on January 1 . The
A machine costing $213,000 with a four-year life and an estmated $17,000 salvage value is installed in Luther Company's factory on January 1 . The factory manager estumates the machine will produce 490,000 units of product during its life. It actually produces the following units: 122,100 in Year 1,123,600 in Year 2, 119,900 in Year 3,134,400 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreclated 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, (Straight line method, units of production method, and double declining balance method).
Note: Round your per unit depreclation to 2 decimal places.
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