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A machine costing $215,600 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory
A machine costing $215,600 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 489,000 units of product during its life. It actually produces the following units: 122,300 in Year 1, 122,700 in Year 2, 121,200 in Year 3, 132,800 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis difference was not predicted. (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 dollar.) Straight Line Units of 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 1 2 3 4 Total $ 0 Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Units of Production Depreciable Depreciation Units Year Units Depreciation Expense per unit 122,300 2 122,700 121,200 132,800 4 Total 0 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 the Double- declining-balance. End of Period DDB Depreciation for the Period Beginning of Depreciation Period Book Depreciation Rate Value Expense Year Book Value Depreciation 1 % 0 2 0 3 % 0 4 % 0 Total $ 0
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