A machine costing $211,000 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 480,000 units of product during its useful life. It actually produces the following units: 

121,600 in the 1st year, 

124,200 in the 2nd year, 

120,100 in the 3rd year, 

124,100 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 depreciation for each year (and total depreciation for all years combined) for the machine under each depreciation method. 

Answer rating: 100% (QA)

To calculate the depreciation for each year and the total depreciation for all years combined we nee... View the full answer