A machine costing $215,400 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 491,000 units of product during its life. It actually produces the following units: 121,400 in 1st year, 124,100 in 2nd year, 120,200 in 3rd year, 135,300 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.) points 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.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Units of Straight LineProduction 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 Units Depreciation per unit Depreciation Year Expense 121.400 $ 0.40 24,100$ 0.40 120,200 135,300 x 501,000 0.4048,560 49,640 48,080 54,120 $ 200,400 0.40 3 4 Total 0.40 Straight Line DDB 2 Required information Part 1 of3 The following information applies to the questions displayed below. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machine's useful life is estimated at 20 years, or 395,000 units of product, with a $8,000 salvage value During its second year, the machine produces 33,500 units of product. 2.5 points Determine the machine's second-year depreciation using the double-declining-balance method Answer is complete but not entirely correct. Annual Depreciation Choose Factors Choose Factor(%) nse Beginning book value Double the straight-line rate Depreciation expense 87,000x First year's depreciation Second year's depreciation 20% - |$ 17,400 87,000X X 2090 3- 17,400 3 Required information Part 2 of 3 [The following information applies to the questions displayed below. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machine's useful life is estimated at 20 years, or 395,000 units of product, with a $8,000 salvage value During its second year, the machine produces 33,500 units of product. 2.5 points Determine the machine's second-year depreciation and year end book value under the straight-line method Answer is complete but not entirely correct Straight-Line Depreciation Annual Choose Numerator: Choose Denominator: Depreciation Expense Cost minus salvage Estimated useful life (years) ex 79,000 20S 3,950 r 2 ion $ 7,900 r end book value $ 79,100 4 Required information The following information applies to the questions displayed below. Part 3 of 3 Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $87000. The machine's useful life is estimated at 20 years, or 395,000 units of product, with a $8,000 salvage value During its second year, the machine produces 33,500 units of product. 2.5 points Determine the machine's second-year depreciation using the units-of-production method. Answer is complete but not entirely correct. Choose Numerator: Choose Denominator: Annual Depreciation Expense Cost minus salvage | Total units of production l Depreciation expense per unit 79,000 nnual Production units 79,000 3,950.00 ear Depreciation Expense
