A machine costing $215,000 with a four-year life and an estimated $19.000 salvage value is...

80.2K

Verified Solution

Question

Accounting

image
image
image
A machine costing $215,000 with a four-year life and an estimated $19.000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 490,000 units of product during its life. It actually produces the following units: 123 200 in Year 1, 122,900 in Year 2, 120,300 in Year 3, 133,600 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 dollor.) Complete this question by entering your answers in the tabs below. Straight line Units of Production ODB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight line depreciation Straight Line Depreciation Year Depreciation Expense Year 1 Year 2 Year 3 Year 4 Total S Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for production. Year Depreciation Expense per unit Year 1 Year 2 Year 3 Units of Production Units Depreciable Depreciation Units 123,200 122,900 120,300 133,600 Year 4 Total $ 0 0 Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the declining-balance. End of Period Year DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Rate Value Expense % Accumulated Depreciation Book Value Year 1 $ 0 Year 2 % 0 Year 3 % 0 Year 4 % o Total 0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students