Question
Problem 8-2A Depreciation methods LO P1 A machine costing $212,600 with a four-year life and an estimated $17,000 salvage value is installed in Luther Companys
Problem 8-2A Depreciation methods LO P1
A machine costing $212,600 with a four-year life and an estimated $17,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 489,000 units of product during its life. It actually produces the following units: 121,800 in 1st year, 123,500 in 2nd year, 119,900 in 3rd year, 133,800 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimatethis difference was not predicted. (The machine must not 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.)
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