Question

A machine costing $207,200 with a four-year life and an estimated $16.000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 478,000 units of product during its life. It actually produces the following units: 122,100 in Year 1,124,000 in Year 2, 119,800 in Year 3, 122100 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 Straight-line depreciation Straight-Line Depreciation Depreciation Expense Year Total S Units of Production >

Answer 1

straight line depreciation year depreciation expense $ 47,800 $ 47,800 $ 47,800 $ 47,800 $ 191,200 total units of production year units depreciable units depreciation per unit depreciation expense 122,100 124,000 119,800 122,100 122,100 124,000 119,800 112,100 478,000 $0.40 $ 0.40 $0.40 $ 0.40 $ 48,840 $ 49,600 $ 47,920 $ 44,840 $ 191,200 total

DDB depreciation for the period end of period year beginning of period book value depreciation rate depreciation expense accumulated depreciation book value 1 2 $ 207,200 $ 103,600 $ 51,800 $25,900 50% 50% 50% $ 103,600 $ 51,800 $ 25,900 $ 9,900 $ 191,200 $ 103,600 $ 155,400 $ 181,300 $ 191,200 $ 103,600 $ 51,800 $ 25,900 $ 16,000 4 total

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