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A machine costing $217600 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 $217600 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 494,000 units of product during its life. It actually produces the following units: 122,300 in 1st year, 123,900 in 2nd year. 121,500 in 3rd year, 136,300 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 unlt depreclatlon to 2 declmal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below Units of Straight Line Production 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 Total Units of Straight LineProduction DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Units of production Units of Production Year Units per unit Expense Total Units of Straight Line Production 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 Year Period Book Rate Expense Depreciation Book Value Value 96 96
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