A machine costing $215,000 with a four-year life and an estimated $19,000 salvage value is installed...

Transcribed Image Text:

A machine costing $215,000 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 490,000 units of product during its life. It actually produces the following units: 123,200 in Year 1, 122,900 in Year 2, 120,300 In Year 3, 133,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: 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 Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Straight-Line Depreciation Depreciation. Expense Year Year 1 Year 2 Year 3 Year 4 Total DDB S Straight Line Units of Production Year Year 1 Year 2 Year 3 Year 4 Total Compute depreciation for each year (and total depreciation of all years combined) fo production. Units DDB Units of Production Depreciable Units 123,200 122,900 120,300 133,600 Depreciation per unit Depreciation Expense LA 0 Straight Line Year Units of Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the C declining-balance. Year 1 Year 2 Year 3 Year 4 Total DDB DDB Depreciation for the Period Beginning of Period Book Value Depreciation Depreciation Rate Expense % % % % $ 0 End of Period Accumulated Depreciation Book Value $ 0 0 0 0 A machine costing $215,000 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 490,000 units of product during its life. It actually produces the following units: 123,200 in Year 1, 122,900 in Year 2, 120,300 In Year 3, 133,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: 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 Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Straight-Line Depreciation Depreciation. Expense Year Year 1 Year 2 Year 3 Year 4 Total DDB S Straight Line Units of Production Year Year 1 Year 2 Year 3 Year 4 Total Compute depreciation for each year (and total depreciation of all years combined) fo production. Units DDB Units of Production Depreciable Units 123,200 122,900 120,300 133,600 Depreciation per unit Depreciation Expense LA 0 Straight Line Year Units of Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the C declining-balance. Year 1 Year 2 Year 3 Year 4 Total DDB DDB Depreciation for the Period Beginning of Period Book Value Depreciation Depreciation Rate Expense % % % % $ 0 End of Period Accumulated Depreciation Book Value $ 0 0 0 0

Answer rating: 100% (QA)

Straight line Depreciation Cost Salvage value Estimated Useful life 215000 19000 4 years Dep... View the full answer