Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 10-2A Depreciation methods LO P1 A machine costing $210,000 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's

image text in transcribedimage text in transcribedimage text in transcribed

Problem 10-2A Depreciation methods LO P1 A machine costing $210,000 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 485,000 units of product during its life. It actually produces the following units: 123,200 in Year 1, 122,700 in Year 2, 119,800 in Year 3, 129,300 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. Units of Straight Line DDB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation Straight-Line Depreciation Depreciation Expense Year 1 2 3 4 Total 0 Units of Straight Line DDB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production Units of Production Depreciation Expense Depreciable Units Depreciation per unit Year Units 1 123,200 122,700 2 3 119,800 4 129,300 Total 0 Units of Production Straight Line 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 Beginning of Depreciation Depreciation Period Book Accumulated Year Book Value Rate Expense Depreciation Value 1 0 2 0 0 4 0 Total $ 0 986

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

Step: 3

blur-text-image

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

Auditing Cases An Interactive Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

4th Edition

0132423502, 978-0132423502

More Books

Students also viewed these Accounting questions