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A machine costing $216,000 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 $216,000 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 490,000 units of product during its life. It actually produces the following units: 121,900 in 1st year, 123.800 in 2nd year, 120.200 in 3rd year, 134, 100 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.) (Ctrl) Year per unit 1 2 Units of Production Depreciable Depreciation Units 121,900 $ 0.40 123,800 $ 0.40 120,200 $ 0.40 134,100 0.40 500,000 Depreciation Expense $ 48,760 49,520 48,080 53,640 200,000 3 4 Total Richt Year 1 DDB Depreciation for the Period End of Period Beginning of Period Depreciation Depreciation Accumulated Book Book Rate Expense Depreciation Value Value $ 216,000 50 % S 108,000 $ 108,000 $ 108,000 108,000 50 % 54,000 162,000 54,000 54,000 50 % 27,000 189,000 27,000 27,000 50 % 13,500 202,500 13,500 S 202,500 2 3 4
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