Question: Problem 8-2A Depreciation methods LO P1 A machine costing $212,400 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's


Problem 8-2A Depreciation methods LO P1 A machine costing $212,400 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 486,000 units of product during its life. It actually produces the following units: 121,700 in 1st year, 123,000 in 2nd year, 121,600 in 3rd year, 129,700 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate-this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) Required: 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 Depreciation Expense Year 4 Total $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
