A machine costing $257500 with a four-year life and an estimated $20000 salvage value is installed in Luther Co.s factory on January 1. The factory manager estimates the machines will produce 475000 units of product during its life. It actually produces the following units:220000 in 1st year, 124600 in 2nd year, 121800 in 3rd year, 15200 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate-its difference was not prodicted. (the machine must not be depreciated below its estimated salvage value.

Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.

(a) Suppose instead that the asset will be depreciated over six years and the salvage value is now $10,000. Prepare a new table based on this revised information for the straight line and DDB methods (only).

(b) Make a graph comparing the various depreciation methods for the first assumption.