Question
A machine costing $214,200 with a four-year life and an estimated $17,000 salvage value is installed in Luther Companys factory on January 1. The factory
A machine costing $214,200 with a four-year life and an estimated $17,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 493,000 units of product during its life. It actually produces the following units: 123,000 in 1st year, 123,300 in 2nd year, 121,200 in 3rd year, 135,500 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimatethis difference was not predicted. (The machine must not be depreciated below its estimated salvage value.)
Why did I wrong I couldn't put 13387.5 in depreciation expense.
Answer is complete but not entirely corre 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 th production. Year 1 Units of Production Depreciable Depreciation Depreciation Units per unit Expense 123.000 $ 0.40 $ 49,200 123.000 X $ 0.40 49,200 X 121,200 $ 0.40 48,480 135.500 X 0.40 54,200 x 502.700 $ 201,080 2 3 4 Total DDB > 2 yN - V2.51 -2... X Answer is complete but not entirely correc 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 declining-balance. Year 1 DDB Depreciation for the Period End of Period Beginning of Period Depreciation Depreciation Accumulated Book Book Rate Expense Depreciation Value Value $ 214,200 50% IS 107,100 $ 107, 100 $ 107,100 107,100 50 % 53,550 160.650 53,550 53,550 50% 26.775 187 425 26.775 26.775 50 % 13,388 x 200.813 13,387 $ 200.813 2 3 4 4 v2rayN - V2.51 - 2Step by Step Solution
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