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Problem 8-2A (Algo) Depreciation methods LO P1 A machine costing $206,200 with a four-year life and an estimated $15,000 salvage value is installed in Luther
Problem 8-2A (Algo) Depreciation methods LO P1 A machine costing $206,200 with a four-year life and an estimated $15,000 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: 122,000 in Year 1, 122,700 in Year 2, 119,700 in Year 3, 123,600 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 $ 48,880 2 49,080 3 1 4 Total 97,960 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 per unit Year Units Depreciation Expense 1 2 3 4. 122,000 122,700 119,700 123,600 Total $ 0 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 Beginning of Year Period Book Depreciation Depreciation Accumulated Book Value Rate Value Expense Depreciation $ 0 2 0 3 % 0 % 0 Total $ 0 1 4
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