Problem 8-2A Depreciation methods LO P1

A machine costing $214,200 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 488,000 units of product during its life. It actually produces the following units: 123,300 in 1st year, 122,500 in 2nd year, 121,400 in 3rd year, 130,800 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimatethis difference was not predicted. (The machine must not 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.)

Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Straight-line depreciation.

Straight-Line Depreciation
Year	Depreciation Expense
1	$48,800
2	48,800
3	48,800
4	48,800
Total	$195,200

Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Units of production.

Units of Production
Year	Depreciable Units	Depreciation per unit	Depreciation Expense
1	123,300	$0.40	$49,320
2	122,500	$0.40	49,000
3	121,400	$0.40	48,560
4	? (answer is not 130,800)	$0.40	?
Total	?		$?

Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Double-declining-balance.

	DDB Depreciation for the Period				End of Period
Year	Beginning of Period Book Value	Depreciation Rate		Depreciation Expense	Accumulated Depreciation	Book Value
1			%			$0
2			%			0
3			%			0
4			%			0
				$0