A machine costing $320,000 with a four-year life and an estimated $33,000 salvage value is installed in

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A machine costing $320,000 with a four-year life and an estimated $33,000 salvage value is installed in Luther Company€™s factory on January 1. The factory manager estimates the machine will produce 512,500 units of product during its life. It actually produces the following units: year 1, 127,500; year 2, 129,000; year 3, 128,500; and year 4, 127,900. 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
Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.
A machine costing 320000 with a fouryear life and an
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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