Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A machine costing $214,200 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory on January 1. The factory

image text in transcribed

image text in transcribed

A machine costing $214,200 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's 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: 121,600 in 1st year, 122,500 in 2nd year, 121,400 in 3rd year, 137,500 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.) 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 each Units of production. Units of Production Depreciable Depreciation Units per unit Year Depreciation Expense 2 3 Total A machine costing $214,200 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's 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: 121,600 in 1st year, 122,500 in 2nd year, 121,400 in 3rd year, 137,500 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.) 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 each Double- declining-balance. End of Period DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Value Rate Expense Year Accumulated Depreciation Book Value

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

Step: 3

blur-text-image

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

Loss Control Auditing A Guide For Conducting Fire Safety And Security Audits

Authors: E. Scott Dunlap

2nd Edition

103244293X, 978-1032442938

More Books

Students also viewed these Accounting questions

Question

Solve this system of equations. 2.2y +22z 22

Answered: 1 week ago

Question

Have people who have high power in society earned their power?

Answered: 1 week ago

Question

3. List ways to manage relationship dynamics

Answered: 1 week ago