Question

A machine costing $214,600 with a four-year life and an estimated $17.000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life. It actually produces the following units: 122.400 in Year 1,124,300 in Year 2, 121,300 in Year 3. 136,000 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.) 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 the Units of production Year Units 122.400 124,300 121,300 136.000 Units of Production Depreciable anciation Units per unit 197,600 $ 0.40 197,600 0.40 197 600 $ 0.40 197 600 Ⓡ $ 0.40 790.400 Depreciation Expense 48.900 49,720 48,520 50.400 197 600 < Straight Line DDB >

disregared the first picture

Answer 1

Answer -

1-a. Answer -

Total cost	$23650
Less : Accumulated depreciation (from year 1)	$4270
Book value	$19380
Less : Revised salvage value	$2700
Remaining cost to be depreciated	$16680
Years of life remaining	3
Total depreciation for year 2	$5560

Calculation :

Total cost = $22015 + $1635

Total cost = $23650

Accumulated depreciation (from year 1) = $23650 - $2300 (salvage value 1st year) / 5 years

Accumulated depreciation (from year 1) = $21350 / 5 years

Accumulated depreciation (from year 1) = $4270

1-b. Answer -

Depreciation expense (for Year 1)	$4270
Depreciation expense (for Year 2)	$5560
Depreciation expense (for Year 3)	$5560
Accumulated depreciation 12/31/Year 3	$15390
Book value of truck at 12/31/Year 3
Total Cost	$23650
Less : Accumulated depreciation	$15390
Book value 12/31/Year 3	$8260
Loss on sale of truck	$2660

Calculation :

Loss on sale of truck = $8260 - $5600

Loss on sale of truck = $2660

1-c. Answer -

No.	Date	General Journal	Debit	Credit
1.	Jan. 01, Year 1	Trucks	$23650
		Cash		$23650
2.	Dec. 31, Year 1	Depreciation expense-Trucks	$4270
		Accumulated depreciation-Trucks		$4270
3.	Dec. 31 Year 2	Depreciation expense-Trucks	$5560
		Accumulated depreciation-Trucks		$5560
4.	Dec. 31 Year 3	Depreciation expense-Trucks	$5560
		Accumulated depreciation-Trucks		$5560
5.	Dec. 31 Year 3	Cash	$5600
		Accumulated depreciation-Trucks	$15390
		Loss on disposal of trucks	$2660
		Trucks		$23650