Problem 8-2A (Algo) Depreciation methods LO P1 A machine costing $217,600 with a four-year life and an estimated $20,000 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: 122,500 in Year 1, 123,300 in Year 2, 121,600 in Year 3, 136,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: 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 Year Depreciation Expense Yeart $ 12,350 Year 2 12,350 3 Year 3 12.350 3 Year 4 12,3503 Total $ 49.400 Strumine Units of Production Problem 8-2A (Algo) Depreciation methods LO P1 od A machine costing $217,600 with a four-year life and an estimated $20,000 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: 122,500 in Year 1. 123,300 in Year 2, 121,600 in Year 3. 136,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: 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 Une 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 Year Year Units of Production Depreciable Depreciation Depreciation Units per unit Expense 122.500 $ 0:40$ 49,000 1 122.500 Year 2 123,300 123,300 0.40 49,320 Year 3 121.500 121.000 0.40 48,640 Year 4 136,600 0:40 Total 136.600s 504,000 $ 54.640 201.000 S Problem 8-2A (Algo) Depreciation methods LO P1 od A machine costing $217,600 with a four-year life and an estimated $20,000 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: 122,500 in Year 1,123,300 In Year 2, 121,600 In Year 3, 136,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate--this difference was not predicted. Note: 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 000 Depreciation for the Period End of Period Beginning Year of Period Depreciation Depreciation Accumulated Book Value Rate Expense Depreciation Book Value Yeart $ 217.500 50% $ 108 800 108.800 $ 100.000 You 2 108.800 50% 54.400 163 200 54,400 Year 54400 50% 27.200 100,400 27,200 Your 4 27.200 50 % 13.000 204,000 13.000 Total $ 204 000