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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 Companys factory on January 1. The factory

A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Companys 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 estimatethis 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.) Complete this question by entering your answers in the tabs below.

Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation.

Straight-Line Depreciation
Year Depreciation Expense
1
2
3
4
Total

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
1 220,000
2 124,600
3 121,800
4 15,200
Total

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
Year Beginning of Period Book Value Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value
1 %
2 %
3 %
4 %
Total

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