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Problem 8-2A Depreciation methods LO P1 A machine costing $216,000 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's
Problem 8-2A Depreciation methods LO P1 A machine costing $216,000 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 495,000 units of product during its life. It actually produces the following units: 123,000 in 1st year, 123,100 in 2nd year, 120,400 in 3rd year, 138,500 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.) Straight-Line Depreciation Year Depreciation Expense Total $ Units of Production Depreciable Depreciation Units per unit Year Depreciation Expense 2 3 4 Total $ End of Period DDB Depreciation for the Period Beginning of Depreciation Depreciation Period Book Rate Value Expense Year Accumulated Depreciation Book Value Total $ 0
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