A machine costing $218,000 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 495,000 units of product during its life. It actually produces the following units: 122.400 in Year 1. 124,300 in Year 2. 119,900 in Year 3, 138,400 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this 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.) Complete this question by entering your answers in the tabs below. Units of Straight line 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 A machine costing $218,000 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 495,000 units of product during its life. It actually produces the following units: 122,400 in Year 1. 124,300 in Year 2, 119,900 in Year 3, 138,400 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this 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.) Complete this question by entering your answers in the tabs below. Straight Line huts 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 Year Units Depreciable Depreciation Depreciation Units per unit Expense 1 122.400 2 124,300 3 119.900 4 138,400 Total A machine costing $218,000 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 495,000 units of product during its life. It actually produces the following units: 122.400 in Year 1. 124,300 in Year 2, 119,900 in Year 3, 138,400 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this 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.) Complete this question by entering your answers in the tabs below. Units of Straight Line Production DDB Compute depreciation for each year and total depreciation of all years combined) for the machine under the Double- declining-balance DDB Depreciation for the Period End of Period Beginning of Accumulated Year Depreciation Depreciation Period Book Book Value Expense Depreciation Value $ Rate 0 1 0 2 % % 0 3 0 4 % $ Total
