Question: Problem 10-2A Depreciation methods LO P1 24 points A machine costing $207400 with a four-year life and an estimated $15,000 salvage value is installed in

 Problem 10-2A Depreciation methods LO P1 24 points A machine costing
$207400 with a four-year life and an estimated $15,000 salvage value is
installed in Luther Company's factory on January 1. The factory manager estimates

Problem 10-2A Depreciation methods LO P1 24 points A machine costing $207400 with a four-year life and an estimated $15,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 481.000 units of product during its life. It actually produces the following units: 122,800 in Year 1, 123,400 in Year 2, 120,600 In Year 3, 124.200 in Your 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. 24 points Straight Line Units of DDB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production Year 1 2 3 Units 122,800 123.400 120,000 124 200 Units of Production Depreciable Depreciation Units per unit 122,800 123.400 120,600 124.2003 491,000 OOO Depreciation Expense $ 61.400 61,700 60,300 62,100 $ 245,500 4 Total Straight Line DDB > points Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance. DDB Depreciation for the Period End of Period Beginning of Period Depreciation Depreciation Year Accumulated Book Book Rate Expenso Depreciation Value Value % s 0 2 % 3 % 0 4 % Total 1 old 0 0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!