Accounting practice problem 3

A machine costing $212,200 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 483,000 units of product during its life. It actually produces the following units: 122,400 in Year 1, 123,000 in Year 2, 120,600 in Year 3, 127,000 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 Une Units of Production DDB 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 2 Total 0 Check my work A machine costing $212.200 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 483,000 units of product during its life. It actually produces the following units: 122,400 in Year 1,123,000 in Year 2, 120.600 in Year 3, 127,000 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. Units of Straight Line Production DDB Compute depreciation for each year and total depreciation of all years combined) for the machine under the Units of production. Depreciation Expense Units of Production Depreciable Depreciation Units Units per unit 122.4001 123.000 120,000 127 000 Total A machine costing $212,200 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 483.000 units of product during its life. It actually produces the following units: 122.400 in Year 1, 123,000 in Year 2, 120.600 in Year 3, 127,000 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 DOB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double declining-balance. End of Period DDB Depreciation for the Period Beginning of Danreciation Depreciation Period Book Rate Expense Value Year Accumulated Depreciation Book Value