Problem 8-2A Depreciation methods LO P1

A machine costing $206,400 with a four-year life and an estimated $16,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 476,000 units of product during its life. It actually produces the following units: 122,400 in Year 1, 123,700 in Year 2, 119,900 in Year 3, 120,000 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.)

Part 2:

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. End of Period Year Book Value $ 1 2 DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Rate Value Expense p $ 206,400 25 % $ 47,600 158,800 25 % 47,600 111,200 25% 47,600 63,600 25 % 47,600 $ 190,400 Accumulated Depreciation $ 47,600 95,200 142,800 190,400 158,800 111,200 63,600 16,000 Total (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 1 $ 47,600 47,600 47,600 47,600 Total $ 190,400 Straight Line Units of Production > Required information Problem 8-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine and an additional $1,200 to secure it in place. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 8-6A Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $21,000 cash; (b) it is sold for $84,000 cash; and (c) it is destroyed in a fire and the insurance company pays $31,500 cash to settle the loss claim. 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $21,000 cash; (b) it is sold $84,000 cash; and (c) it is destroyed in a fire and the insurance company pays $31,500 cash to settle the loss claim. % Answer is not complete. No Credit Date Dec 31 1 General Journal Cash Accumulated depreciationMachinery Loss on sale of machinery Debit 84,000 146,800 29,400 Dec 31 Cash 92,000 146,800 Accumulated depreciation Machinery Gain on sale of machinery Machinery 39,600 X 199,200 Dec 31 Cash Accumulated depreciation Machinery Loss from fire Machinery 33,500 X 146,800 18,900 X 199,200