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answer problem 1 Check my work Problem 8-2A (Algo) Depreciation methods LO P1 A machine costing $210.000 with a four-year life and an estimated $20,000
answer problem 1
Check my work Problem 8-2A (Algo) Depreciation methods LO P1 A machine costing $210.000 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 475,000 units of product during its life. It actually produces the following units 121800 in Year 1, 122.800 in Year 2.120.200 in Year 3.120.200 in Year 4 The total number of units produced by the end of Year 4 exceeds the original estimatethis 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 (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar) Straight Line Units of 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 Year Depreciation Expense 1 2 3 4 Total 0 Units of Production > Steag Line 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. Year Units of Production Depreciable Depreciation Depreciation Units Expense Units per unit 1 2 121,800 122,800 120,200 120,200 3 4 Total $ 0 Step by Step Solution
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