Question: Problem 8-2A (Algo) Depreciation methods LO P1 A machine costing $206,400 with a four-year life and an estimated $16,000 salvage value is installed in


Problem 8-2A (Algo) Depreciation methods LO P1 A machine costing $206,400 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 476,000 units of product during its life. It actually produces the following units: 122,100 in Year 1, 123,400 in Year 2, 120,500 in Year 3, 120,000 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. 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.) 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 Straight- line depreciation. Straight Line Depreciation Depreciation Year Year 1 Year 2 Year 3 Year 4 Total Expense By entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Units of Production Year Units Depreciable Units Year 1 122,100 Year 2 123,400 Year 3 120,500 Year 4 120,000 Total Depreciation per unit Depreciation Expense < Straight Line DDB > Complete this question by entering your answers in the tabs below. 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 Beginning of Year Period Book Value Year 1 Year 2 Year 3 Year 4 Total End of Period Depreciation Rate Depreciation Expense Accumulated Book Value Depreciation % % % % < Units of Production DDB
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
