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A machine costing $213,400 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 $213,400 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 486,000 units of product during its life. It actually produces the following units: 122,600 in Year 1, 122,500 in Year 2, 120,500 in Year 3, 130,400 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis 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 Year Depreciation Year 1 Expense Year 2 Year 3 Year 4 Total $ 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 Depreciation per unit Expense Year 1 122,600 Year 2 122,500 Year 3 120,500 Year 4 130,400 Total $ 0 < Straight Line DDB > 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 Beginning of Year Period Book Value Year 1 Year 2 Year 3 Year 4 Total End of Period Depreciation Rate Depreciation Accumulated Book Value Expense Depreciation % $ EA % % % $ 0 < Units of Production DDB 0 0 0 0
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