A machine costing $210,200 with a useful life of four years and an estimated salvage value of
Question:
A machine costing $210,200 with a useful life of four years and an estimated salvage value of $19,000 is installed at the Luther Company factory on January 1. The factory manager estimates that the machine will produce 478,000 units of product during its useful life. It actually produces the following units:
121,800 in the 1st year,
123,600 in the 2nd year,
121,200 in the 3rd year,
121,400 in the 4th year.
The total number of units produced at the end of year 4 exceeds the original estimate; this difference was not predicted. (The machine must not depreciate below its estimated salvage value.)
Required:
Calculate each year's depreciation (and the total depreciation for all years combined) for the machine under each depreciation method.
Calculate the depreciation for each year (and the total depreciation for all years combined) for the machine under each straight-line depreciation.
Calculate each year's depreciation (and the total depreciation for all years combined) for the machine in each Production Unit.
Calculate each year's depreciation (and the total depreciation for all years combined) of the machine on each double declining balance.
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina