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A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is Installed In Luther Company's factory on January 1. The
A machine costing $257,500 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 475,000 units of product during its life. It actually produces the following units: 220,000 in Year 1, 124,600 In Year 2, 121,800 in Year 3, and 15,200 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: 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. Note: Round your per unit depreciation to 2 decimal places. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Straight Line Units 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 Units Depreciation per unit Depreciation Expense Year 220,000 220,000 $ 0.50 $ 110,000 1 Year 124,600 124.800 S 0.60 -> 62,300 2 Year 121.800 121,800 $ 0.50 60.000 -> 3 Year 15.200 15.200 S 0.50 7,000 4 Total 481.800 S 240,800
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