Question

Check my work 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: 121,700 in 1st year, 123.000 in 2nd year, 120,300 in 3rd year 139,000 in 6th year. The total number of units produced by the end of year 4 exceeds the original estimate this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) 168 Required: Compute depreciation for each year (and total depredation 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 DO Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Double declining balance DDD Depreciation for the Period Beginning of Depreciation Depreciation Period Book Rate Expense Accumulated Book Value DOO < Units of Production < Prey 3 of 3 I Next >

Answer 1

Double decline rate = 100/4*2 = 50%

	DDB Depreciation for the period			End of period
Year	Beginning of period book value	Depreciation rate	Depreciation expense	Accumulated depreciation	Book value
1	214600	50%	107300	107300	107300
2	107300	50%	53650	160950	53650
3	53650	50%	26825	187775	26825
4	26825	50%	9825	197600	17000
Total			197600