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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
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: 123,300 in Year 1, 123,900 in Year 2, 119,900 in Year 3, 133,900 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. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Note: 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. Straight Line Units of Production Double declining balance Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Units of Production Year Units Depreciable Units Depreciation per unit Depreciation Expense Year 1 123,300 122,700 $ 0.40 $ 48,840 Year 123,900 2 123,400 $ 0.40 49,360 Year 119,900 122,100 $ 0.40 47,840 3 Year 133,900 122,100 $ 0.40 54,120 4 Total 490,300 $ 200,160 < Straight Line Double declining balance >
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