Question
A machine costing $ 216,600 with a four year life and an estimated $ 19,000 salvage value is installed in luther company's on.January 1. The
A machine costing $ 216,600 with a four year life and an estimated $ 19,000 salvage value is installed in luther company's on.January 1. The factory manager estimates the machine will produce 494,000 units of product during its life.it actually produces the following units: 123,000 in 1st year, 124,100 in 2nd year. 120,300in 3rd year,136,600 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 machinemust not be depreciated below its estimated salvage value) Compute depreciation for each year( and total depreciation of all years combined) for the machine under each depreciation method.
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