Question: please only do whatever it shows incorrect Problem 8-2A Depreciation methods LO P1 A machine costing $257,500 with a four-year life and an estimated $20,000
Problem 8-2A Depreciation methods LO P1 A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: 220,000 in Year 1, 124,600 in Year 2, 121.800 in Year 3, and 15,200 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.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Units of Production DDB Straight Line Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production Year Units 1 Units of Production Depreciable Depreciation Depreciation Units per unit Expense 220,000 $ 0.50 $ 110,000 124,600 $ 0.50 62 300 121,800 $ 0.50 60.900 59.375$ 0.50 4.300 525.775 $ 237.500 220.000 124.600 121,800 15,200 2 4 Total DDB >
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
