70.2K

Verified Solution

Link Copied!

- Chapters 6, 7 and 8 Sawed 3 A machine costing $212,400 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 486,000 units of product during its life. It actually produces the following units: 123,000 in Year 1. 123,300 in Year 2, 120,400 in Year 3, 129,300 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.) 12:47 Complete this question by entering your answers in the tabs below. DDB Straight line Units of Production Computer depreciation for each year cand total depreciation of all years combined) for the machine under the Units of production Yoor 1 2 Units of Production Units Depreciable Depreciation Depreciation Units per unit Expense 123,000 123000 $ 0.40 $ 40.200 123,300 123.300S 0.40 49,320 129,400 120.400 5 0.40 4,160 129.300 129.300 $ 0.40 51.720 S 496.000 $ 188.400 3 4 Total

Answer & Explanation Solved by verified expert

See Answer