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Problem 8-2A Depreciation methods LO P1

A machine costing $207,000 with a four-year life and an estimated $17,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: 122,400 in Year 1, 123,700 in Year 2, 119,600 in Year 3, 119,300 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis 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.)

Straight Line Units of Production DDB Compute depreciation for each year and total depreciation of all years combined) for the machine under the Straight-line depreciation. Straight-Line Depreciation Depreciation Year 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 the Units of production Year 1 Units of Production Units Depreciable Depreciation Depreciation Units per unit Expense 122,400 123,700 119,600 119,300 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 the Double- declining-balance. DDB Depreciation for the Period End of Period Beginning of Year Period Book Depreciation Depreciation Accumulated Book Value Rate Value Expense Depreciation % $ 0 1 2 % 0 3 % 0 4 % 0 Total $ 0

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