Question: Problem 10-2A (Algo) Depreciation methods LO P1 A machine costing $209,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther

Problem 10-2A (Algo) Depreciation methods LO P1

A machine costing $209,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 122,100 in Year 1, 122,900 in Year 2, 119,900 in Year 3, 122,100 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis 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.)

Straight-Line Depreciation
Year Depreciation Expense
Year 1
Year 2
Year 3
Year 4
Total
Units of Production
Year Units Depreciable Units Depreciation per unit Depreciation Expense
Year 1 122,100
Year 2 122,900
Year 3 119,900
Year 4 122,100
Total
DDB Depreciation for the Period End of Period
Year Beginning of Period Book Value Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value
Year 1 %
Year 2 %
Year 3 %
Year 4 %
Total

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