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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.
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
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