Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help A machine costing $210,200 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1.

image text in transcribed

image text in transcribed

image text in transcribed

please help

A machine costing $210,200 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 478,000 units of product during its life. It actually produces the following units: 123,300 in Year 1,123,400 in Year 2, 121,400 in Year 3, 119,900 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this 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 year's 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 the Straight-line depreciation. Straight-Line Depreciation Depreciation Year Expense 1 2 3 4 Total straight Line Units of Production > A machine costing $210,200 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 478,000 units of product during its life. It actually produces the following units: 123,300 in Year 1, 123.400 in Year 2, 121,400 in Year 3, 119,900 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this 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. 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 the Units of production Units of Production Depreciable Depreciation Units Year Units Depreciation Expense per unit 1 123.300 2. 123.400 3 121,400 4 119.900 Total A machine costing $210,200 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 478,000 units of product during its life. It actually produces the following units: 123,300 in Year 1, 123,400 in Year 2. 121,400 in Year 3, 119,900 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this 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. 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 the Double- declining-balance. End of Period DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Rate Value Expense Year Accumulated Depreciation Book Value 1 % 2. % 3 % 4 % Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting History And The Rise Of Civilization, Volume II

Authors: Gary Giroux

1st Edition

163157793X, 9781631577932

More Books

Students also viewed these Accounting questions