Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A machine costing $214,600 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 $214,600 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 494,000 units of product during its life. It actually produces the following units: 122,400 in Year 1, 122,800 in Year 2, 121,600 in Year 3, 137,200 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.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
A machine costing $214,600 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 494,000 units of product during its life. It actually produces the following units: 122.400 in Year 1, 122,800 in Year 2, 121,600 in Year 3.137.200 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. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollor.) Complete this question by entering your answers in the tabs below. Units of Straight Line 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 Depreciation Year Expense Year 1 Year 2 Year 3 Year 4 Total $ 0 Straight Line Units of Production > Units of Production DDB Straight Line Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production Year Year 1 Units of Production Units Depreciable Depreciation Depreciation Units per unit Expense 122.400 122,800 121 600 137,200 $ 0 Year 2 Year 3 Year 4 Total DDB Straight Line Units of Production 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 Depreciation Depreciation Period Book Value Rate Expense Year End of Period Accumulated Book Value Depreciation $ Year 1 ola 0 % % 0 Year 2 Year 3 Year 4 Total % 0 $ 0

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

Accounting Information Systems A Practictioner Emphasis

Authors: Cynthia D. Heagy, Constance M. Lehmann

10th Edition

1891002821, 9781891002823

More Books

Students also viewed these Accounting questions

Question

Summarize life insurance and disability insurance.

Answered: 1 week ago

Question

Discuss voluntary benefits.

Answered: 1 week ago

Question

Identify employee service benefits.

Answered: 1 week ago