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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
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: 122,500 in 1st year, 123,400 in 2nd year, 121,200 in 3rd year, 133,900 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 Straight-line depreciation. Straight-Line Depreciation Year Depreciation Expense 1 2 3 4 Total 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. DDB Depreciation for the Period End of Period Beginning of Depreciation Depreciation Accumulated Book Value Expense Depreciation Year Period Book Value Rate 1 % 2 % 3 % 4 % Units of Production DDB
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