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Please explain. Problem 8-2A Depreciation methods LO P1 A machine costing $216,600 with a four-year life and an estimated $19,000 salvage value is installed in
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Problem 8-2A Depreciation methods LO P1 A machine costing $216,600 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life. It actually produces the following units: 122,800 in 1st year, 123,000 in 2nd year, 120,300 in 3rd year, 137,900 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate-this 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. Units of Production Straight Line DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under Straight-line depreciation. Straight-Line Depreciation Depreciation Expense Year 1 4 Total Units of Production Straight Line DDB Compute depreciation for each year (and total depreciation of all years combined) for Units of Production Depreciable Units Depreciation Expense Depreciation per unit Year 1 2 3 4 Total BOD Straight Line DDB Production Compute depreciation for each year (and total depreciation of all years combined) for the balance. End of Period DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Rate Accumulated Year Book Value Depreciation Expense Value 1 2 4 Units of Production DDRStep by Step Solution
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