Problem 10-2A Depreciation methods LO P1

A machine costing $207,400 with a four-year life and an estimated $15,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 481,000 units of product during its life. It actually produces the following units: 122,300 in Year 1, 124,200 in Year 2, 120,400 in Year 3, 124,100 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis 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.)

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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

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
Year	Units	Depreciable Units	Depreciation per unit	Depreciation Expense
1	122,300
2	124,200
3	120,400
4	124,100
Total

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.

	DDB Depreciation for the Period				End of Period
Year	Beginning of Period Book Value	Depreciation Rate		Depreciation Expense	Accumulated Depreciation	Book Value
1			%
2			%
3			%
4			%
Total