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A machine costing $215,200 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory
A machine costing $215,200 with a four-year life and an estimated $18,000 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: 122,300 in 1st year, 122,400 in 2nd year, 121,100 in 3rd year, 137,200 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.) 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. Year 1 DDB Depreciation for the Period End of Period Beginning of Depreciation Period Book Depreciation Accumulated Rate Expense Book Value Value Depreciation $ 215,200 50 % S 107,600 $ 107,600 $ 107,600 107,600 501 % 53,800 161,400 53,800 53,800 50% 26,900 188,300 26,900 26,900 50 % 26,900 $ 188,300 2 3 4
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