Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 8-2A Depreciation methods LO P1 A machine costing $214,600 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's

image text in transcribed
image text in transcribed
image text in transcribed
Problem 8-2A Depreciation methods LO P1 A machine costing $214,600 with a four-year life and an estimated $17,000 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: 122,000 in Year 1, 123,400 in Year 2, 119,700 in Year 3, 138,900 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 Year Depreciation Expense 1 2 3 4 Total $ 0 Straight Line Units of Production > Complete this question by entering your answers in the tabs below. Straight Line Units of DDB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production Year Units of Production Depreciable Depreciation Depreciation Units per unit Expense Units 1 2 3 4 122,000 123.400 119,700 138.900 Total 0 Units of Straight Une ODB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance DOB Depreciation for the Period End of Period Beginning of Year Depreciation Depreciation Accumulated Period Book Book Value Rate Value Expense Depreciation % $ 0 2 % 0 1 0 3 % 0 4 % Total $ DO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Payroll Audit

Authors: Robert Leach

1st Edition

0955970792, 978-0955970795

More Books

Students also viewed these Accounting questions