Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Seved Help Save Problem 8-2A Depreciation methods LO P1 A machine costing $210,600 with a four-year life and an estimated $17.000 salvage value is installed

image text in transcribed
image text in transcribed
Seved Help Save Problem 8-2A Depreciation methods LO P1 A machine costing $210,600 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 484,000 units of product during its life. It actually produces the following units: 123,200 in Year 1, 123,800 in Year 2, 119,900 in Year 3, 127100 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. ults of Straight Une Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production Year Units 1 2 3 123,200 123.800 119,900 127,100 Units of Production Depreciable Depreciation Depreciation Units per unit Expense 123.2001 s 0.40 $ 49.280 123,800 $ 0.40 49,520 119,000 $ 0.40 47.900 127,100 $ 0.40 50.840 $ 41.000 S 197.600 4 Total MacBook Air Problem 8-2A Depreciation methods LO P1 55 A machine costing $210,600 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 484,000 units of product during its life. It actually produces the following units: 123,200 in Year 1, 123,800 in Year 2, 119,900 in Year 3, 127,100 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 oda Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance End of Period Year Accumulated Depreciation Book Value DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Value Rate Expenso 501 50% 50% 50% $ 1 2 3 4 Total $ DO 0 0

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_2

Step: 3

blur-text-image_3

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

Financial Accounting And Reporting

Authors: John McKeith, Bill Collins

2nd Edition

0077138368, 978-0077138363

More Books

Students also viewed these Accounting questions

Question

=+What is Pats minimin choice?

Answered: 1 week ago

Question

Learning is a good thing for everyone. Discuss.

Answered: 1 week ago

Question

What should be the role of managers in HRD?

Answered: 1 week ago

Question

What should be the role of government in HRD?

Answered: 1 week ago