Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Both pictures are the same question. Problem 10-2A Depreciation methods LO P1 A machine costing $211,600 with a four-year life and an estimated $16,000 salvage
Both pictures are the same question.
Problem 10-2A Depreciation methods LO P1 A machine costing $211,600 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 489,000 units of product during its life. It actually produces the following units: 121,900 in 1st year, 123,400 in 2nd year, 121,300 in 3rd year, 132,400 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimatethis difference was not predicted. (The machine must not 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.) 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 each Straight-line depreciation. Straight-Line Depreciation Depreciation Year Expense 1 2 Problem 10-2A Depreciation methods LO P1 A machine costing $211,600 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 489,000 units of product during its life. It actually produces the following units: 121,900 in 1st year, 123,400 in 2nd year, 121,300 in 3rd year, 132,400 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimatethis difference was not predicted. (The machine must not 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.) 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 each Straight-line depreciation. Straight-Line Depreciation Depreciation Year Expense 1 2Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started