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A machine costing $213,600 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The
A machine costing $213,600 with a four-year life and an estimated $16,000 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: 122,900 in Year 1, 122,800 in Year 2, 121,400 in Year 3, 136,900 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. Note: 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 Double declining balance 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 Year 1 122,900 Year 2 122,800 Year 3 121,400 Year 4 136,900 Total Depreciation per unit Depreciation Expense $ 0.40 $ 0.40 $ 0 Double declining balance > < Straight Line
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