Problem 8-2A Depreciation methods LO P1 A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: 220,000 in Year 1,124,600 in Year 2, 121,800 in Year 3, and 15,200 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate--this difference was not predicted. (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.) Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all year depreciation. Straight-Line Depreciation Year Depreciation Expense 1 $ 59,375 2 59,375 3 59,375 4 59,375 237,500 Total $ Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for th production. Year Units Depreciation per unit $ 0.50 0.50 1 $ Depreciable Units 220,000 124,600 121,800 220,000 124,600 Units of Production Depreciation Expense $ 110,000 62,300 60,900 2 3 $ 0.50 121,800 15,200 4 $ 0.50 Total 466,400 $ 233,200 Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for t declining-balance End of Period Year DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Rate Expense Value $ 257,500 % % Accumulated Depreciation Book Value 1 $ 257,500 1 2. 3 3 % % Total $ 0