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 the 1st year, 124,600 in the 2nd year, 121,800 in the 3rd year, 8,600 in the 4th year. Units-of-production: Prepare a table with a heading for each method of depreciation and compute depreciation for each year. Year Straight-line Units-of-Production Double-declining-balance 1 2 3 Straight-line depreciation = (Cost- salvage value) / useful life (Hint: Depreciation amount for straight-line will be the same each year). Calculate: 4 Total Step 1: Compute depreciation per unit = (Cost-salvage value) / total units of production Calculate: Step 2: Depreciation expense = Depreciation per unit x units produced in period Depreciation Year Units per unit Depreciation 2 3 4 Double-declining balance: Step 1: Straight-line rate = 100% / useful life Calculate: Step 2: Multiply the straight-line rate x 2 Calculate: Step 3: Multiply DDB rate x beginning-period book value (Reminder1: Book value is always original cost - accumulated depreciation) (Reminder2: Book value cannot go below salvage value-adjust 4th year depreciation) (Reminder3: You may round depreciation amounts to whole dollars) Accumulated Beginning Book value. Voor Data Depreciation Depreciation Bookinlue 1 +