Problem 10-2A Depreciation methods LO P1 A machine costing $210,000 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 480,000 units of product during its life. It actually produces the following units: 123,000 in Year 1. 122,600 In Year 2. 121,000 in Year 3. 123.400 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 Straight-line depreciation. Straight-Line Depreciation Depreciation Year Expense 1 2 3 4 Total Units of Production > Problem 10-2A Depreciation methods LO P1 A machine costing $210,000 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 480,000 units of product during its life. It actually produces the following units: 123,000 in Year 1. 122,600 In Year 2 121,000 in Year 3, 123,400 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 DDD 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 Depreciation Depreciation Units per unit Expense 1 123.000 2 122 600 3 121000 4 123.400 Total Problem 10-2A Depreciation methods LO P1 A machine costing $210,000 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 480,000 units of product during its life. It actually produces the following unfts: 123,000 in Year 1, 122,600 in Year 2. 121,000 In Year 3. 123.400 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. Suht Line Units of Production DOD Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance Year Rate DOB Depreciation for the Period End of Period Beginning of Period Book Depreciation Depreciation Accumulated Value Expense Depreciation Book Value % % 5 1 2 4
