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8-2a

Problem 8-2A Depreciation methods LO P1 A machine costing $211,400 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 481,000 units of product during its life. It actually produces the following units: 122,400 in Year 1,124,300 in Year 2, 119,900 in Year 3, 124,400 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.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Units of Straight Line Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production Units of Production Year Units Depreciable Depreciation Depreciation Units per unit Expense 1 122.400 123,100 $ 0.40S 49,240 124,300 122.400 S 0.40 48.960 3 119,900 119,800 $ 0.40 47,920 124,400 115.700 $ 0.40 46,280 2 Total $ 481,000 $ 192.400 2 4

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