Question: Saved Help Save & Exit Sub Problem 8-2A Depreciation methods LO P1 A machine costing $212,800 with a four-year life and an estimated $16,000

Saved Help Save & Exit Sub Problem 8-2A Depreciation methods LO P1A machine costing $212,800 with a four-year life and an estimated $16,000

Saved Help Save & Exit Sub Problem 8-2A Depreciation methods LO P1 A machine costing $212,800 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory or January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actually produces the following units: 122,200 in Year 1, 123,600 in Year 2, 121,400 in Year 3, 134,800 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. 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 Units of production. Year Units Units of Production Depreciable Units Depreciation per unit Depreciation Expense 1 122,200 2 123,600 3 121,400 4 134,800 80 3 27 a F4 $ 4 54 #3 E 75 86 tv MacBook Air F6 % 55 ^

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!