A machine costing $210,000 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 machline will produce 485,0o00 units of product during its life. It actually produces the following units: 12,900 In Year 1, 123,900 In Year 2. 120,200 in Year 3, 128,000 In Year 4. The total number of units produced by the end of Year 4 exceeds the orlginal estimate-this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.) Required: Compute depreclation for each year (and total depreclation of all years combined) for the machine under each depreciation method. (Round your per unit depreclation to 2 decimal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Units of Straight Line DDB Production Compute depreciation for each year (and total depreciation of all years combined) for depreciation. machine under the Straight-line Straight-Line Depreciation Depreciation Expense Year 1 49,180 2 49,580 3 48,080 4 51,200 Total 198,000 Straight Line Units of Production >
A machine costing $210,000 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 machline will produce 485,0o00 units of product during its life. It actually produces the following units: 12,900 In Year 1, 123,900 In Year 2. 120,200 in Year 3, 128,000 In Year 4. The total number of units produced by the end of Year 4 exceeds the orlginal estimate-this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.) Required: Compute depreclation for each year (and total depreclation of all years combined) for the machine under each depreciation method. (Round your per unit depreclation to 2 decimal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Units of Straight Line DDB Production Compute depreciation for each year (and total depreciation of all years combined) for depreciation. machine under the Straight-line Straight-Line Depreciation Depreciation Expense Year 1 49,180 2 49,580 3 48,080 4 51,200 Total 198,000 Straight Line Units of Production >
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 46P
Related questions
Question
![A machine costing $210,000 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 485,000 units of product during Its life. It
actually produces the following units: 12,900 In Year 1, 123,900 In Year 2 120,200 in Year 3, 128,000 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 depreclation to 2 decimal places. Round your answers to the nearest whole dollar.)
Complete this question by entering your answers in the tabs below.
Units of
Straight Line
DDB
Production
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line
depreciation.
Straight-Line Depreciation
Depreciation
Éxpense
49,180
49,580
48,080
Year
1
2
3
51.200
Total
198,000
Straight Line
Units of Production >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2Fae532b87-f171-45ab-80c1-ce9443b5137d%2Fjftf6fg_processed.png&w=3840&q=75)
Transcribed Image Text:A machine costing $210,000 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 485,000 units of product during Its life. It
actually produces the following units: 12,900 In Year 1, 123,900 In Year 2 120,200 in Year 3, 128,000 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 depreclation to 2 decimal places. Round your answers to the nearest whole dollar.)
Complete this question by entering your answers in the tabs below.
Units of
Straight Line
DDB
Production
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line
depreciation.
Straight-Line Depreciation
Depreciation
Éxpense
49,180
49,580
48,080
Year
1
2
3
51.200
Total
198,000
Straight Line
Units of Production >
![A machine costing $210,000 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 485,000 units of product during Its life. It
actually produces the following units: 122,900 in Year 1, 123,900 In Year 2. 120,200 in Year 3. 126,000 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 depreclation 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.
Units of
Straight Line
DDB
Production
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of
production.
Units of Production
Depreciable
Units
Depreciation
per unit
0.40
Depreciation
Expense
Year
Units
122,900
122,900 s
2
123,900
0.40
3
120,200
0.40
4
128,000
0.40
Total
122,900
< Straight Line
DDB >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2Fae532b87-f171-45ab-80c1-ce9443b5137d%2F5sn89x7_processed.png&w=3840&q=75)
Transcribed Image Text:A machine costing $210,000 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 485,000 units of product during Its life. It
actually produces the following units: 122,900 in Year 1, 123,900 In Year 2. 120,200 in Year 3. 126,000 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 depreclation 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.
Units of
Straight Line
DDB
Production
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of
production.
Units of Production
Depreciable
Units
Depreciation
per unit
0.40
Depreciation
Expense
Year
Units
122,900
122,900 s
2
123,900
0.40
3
120,200
0.40
4
128,000
0.40
Total
122,900
< Straight Line
DDB >
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