A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value...

A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in

Luther Company’s 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: year 1, 220,000; year 2, 124,600;

year 3, 121,800; and year 4, 15,200. 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.)

Required

Prepare a table with the following column headings and compute depreciation for each year (and total depreciation

of all years combined) for the machine under each depreciation method.

Check Year 4: Units-of-Production

Depreciation, $4,300; DDB

Depreciation, $12,187