Question: Problem 8 - 2 A ( Algo ) Depreciation methods LO P 1 A machine costing $ 2 0 7 , 2 0 0 with

Problem 8-2A (Algo) Depreciation methods LO P1
A machine costing $207,200 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on
January 1. The factory manager estimates the machine will produce 478,000 units of product during its life. It actually produces the
following units: 121,700 in Year 1,123,500 in Year 2,121,600 in Year 3,121,200 in Year 4. The total number of units produced by the end
of Year 4 exceeds the original estimate-this difference was not predicted. 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.
Note: 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.
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line
depreciation.
 Problem 8-2A (Algo) Depreciation methods LO P1 A machine costing $207,200

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!