Depreciation methods LO4 On January 2, Manning Co. purchases and installs a new machi...

Depreciation methods LO4

On January 2, Manning Co. purchases and installs a new machine costing $324,000 with a five-year life and

an estimated $30,000 salvage value. Management estimates the machine will produce 1,470,000 units of product

during its life. Actual production of units is as follows: year 1, 355,600; year 2, 320,400; year 3, 317,000;

year 4, 343,600; and year 5, 138,500. The total number of units produced by the end of year 5 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.