A machine costing $213,200 with a four-year life and an estimated $18,000 salvage value is...
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A machine costing $213,200 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's 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: 121,900 in 1st year, 122,600 in 2nd year, 121,600 in 3rd year, 131,900 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate-this 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.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under Straight- line depreciation. Straight-Line Depreciation Year Depreciation Expense 1 2 3 4 Total Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under Double- declining-balance. End of Period DDB Depreciation for the Period Beginning of Depreciation Depreciation Period Book Rate Expense Value Year Accumulated Depreciation Book Value 1 % 2 % 3 % 4 %
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