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Hi, please help with the question below and provided the detailed solution. Thanks. A machine costing $215,600 with a four-year life and an estimated $20,000
Hi, please help with the question below and provided the detailed solution. Thanks.
A machine costing $215,600 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 489,000 units of product during its life. It actually produces the following units: 122,600 in 1st year, 123,800 in 2nd year, 120,500 in 3rd year, 132.100 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 Year Depreciation Expense 1 2 Total Straight Line Units of Production > Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Units of production. Units of Production Depreciable Depreciation Units per unit Year Depreciation Expense 21 Total Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Double- declining-balance. DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Value Rate Expense End of Period Accumulated Book Value Depreciation YearStep by Step Solution
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