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, 123,600 in Year 2, 121,000 in Year 3, 121,300 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: 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.
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, 123,600 in Year 2, 121,000 in Year 3, 121,300 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: 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.
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, 123,600 in Year 2, 121,000 in Year 3, 121,300 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: 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.
A machine costing $207,200 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 478,000 units of product during its life. It actually produces the following units: 122,100 in Year 1, 123,600 in Year 2, 121,000 in Year 3, 121,300 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Note: Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar. Complete this question by entering your answers in the tabs below. \table[[Straight Line,\table[[Units of],[Production]],\table[[Double],[declining],[balance]]]] Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. \table[[Units of Production],[Year,Units,\table[[Depreciable],[Units]],\table[[Depreciation],[per unit]],\table[[Depreciation],[Expense]]],[Year 1,122,100,0:,,],[Year 2,123,600,0,,],[Year 3,121,000,0,,1],[Year 4,121,300,0,,],[Total,,,,$
Transcribed Image Text:ook
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, 123,600 in Year 2, 121,000 in Year 3, 121,300 in Year 4. The total number of units produced by the end
of Year 4 exceeds the original estimate-this difference was not predicted. Note: 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.
Note: 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.
int
Straight Line
Units of
Production
ences
Double
declining
balance
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of
production.
Units of Production
Year
Units
Depreciable
Units
Depreciation
per unit
Depreciation
Expense
Year 1
122,100
0
Year 2
123,600
0
Year 3
121,000
0
Year 4
121,300
0
Total
$
0
< Straight Line
Double declining balance >
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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