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Problem 8-5A Depreciation methods LO P1 A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's
Problem 8-5A Depreciation methods LO P1 A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: year 1, 220,000; year 2, 124,600; year 3, 121,800; and year 4, 15,200. The total number of units produced by the end of year 4 exceeds the original estimate-this 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.) Straight-Line Depreciatio Depreciation Expense Year 59,375 59,375 59,375 59,375 ..237,500 Total
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