Question

The window shows what is correct and incorrect for the work you have come sota Even if all of the work you have done so far is correct you may not have completed everything 12. 100 points A machine costing $210 200 with a four years and ne ed $10.000 vage v e d in Luther Company's factory on January 1. The factory manager tha n 473.000 units of product during t he actually produces the folog 122.100 sty 12000 and year 121,300 in 3rd year 120.700 n ye The to m ber of produced by the end of year 4 exceeds the original estimate this diference was not predictedThe machine must not be deprecated below test and salvage value) Required Compute depreciation for each year and to pronou s combined for the machine under each depreciation method (Round your per unit de reconto 2 decimal places Round your answers to the nearest whole dollar) Answer is complete and correct. Depreciation 47.800 47.800 47.300 101200 Answer is not complete. Units of Production Depreciable Depreciation Units per unit 122.100S 123.900 121.300 367 300 Answer is not complete DOB Depreciation for the Period End of Period Beginning Depreciation Depreciation Accu ed Expense Book Value Depreciation Book Value

Answer 1

Straight-line Depreciation Method:

Cost of Machine = $210,200
Salvage Value = $19,000
Useful Life = 4 years

Depreciable Cost = Cost of Machine - Salvage Value
Depreciable Cost = $210,200 - $19,000
Depreciable Cost = $191,200

Annual Depreciation = Depreciable Cost / Useful Life
Annual Depreciation = $191,200 / 4
Annual Depreciation = $47,800

Straight-Line Depreciation Depreciation Year Expense 47800 2 47800 3 47800 47800 Total 191200 N

Units of Production Depreciation Method:

Cost of Machine = $210,200
Salvage Value = $19,000
Useful Life = 478,000 units

Depreciable Cost = Cost of Machine - Salvage Value
Depreciable Cost = $210,200 - $19,000
Depreciable Cost = $191,200

Depreciation per unit = Depreciable Cost / Useful Life
Depreciation per unit = $191,200 / 478,000
Depreciation per unit = $0.40

Units of Production Depreciation Depreciation per unit Depreciable Year U nits Expense 1 122100 0.40 48840 2 123900 0.40 49560 121300 0,40 48520 4 110700 0.40 44280 Total 478000 191200

Double-declining Depreciation Method:

Useful Life = 4 years

Double-declining Depreciation Rate = 2 / Useful Life
Double-declining Depreciation Rate = 2 / 4
Double-declining Depreciation Rate = 50%

DDB Depreciation for the Per iod End of Period Accumulated Year-End Book Beginning-Year Depreciation Annual Year Book Value Rate Value Depreciation $ 105,100 Depreciation $ 105,100 $ 157,650 $ 183,925 $ 191,200 $ 210,200 50% 105,100 52,550 $ 26,275 $ 7,275 $ $ 105,100 $ 50% 2 52,550 52,550 50% 26,275 26,275 19,000 Total 191,200