Can you please check my work A machine costing $210,600 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory onJanuary 1. The factory manager estimates the machine will produce 484,000 units of product during its life. It actually produces thefollowing units: 122,500 in Year 1, 123,300 in Year 2, 119,900 in Year 3, 128,300 in Year 4. The total number of units produced by theend of Year 4 exceeds the original estimate-this difference was not predicted. (The machine cannot be depreciated below itsestimated 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 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 ofStraight LineDDBProduction

Answered: A machine costing $210,600 with a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Can you please check my work

A machine costing $210,600 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 484,000 units of product during its life. It actually produces the
following units: 122,500 in Year 1, 123,300 in Year 2, 119,900 in Year 3, 128,300 in Year 4. The total number of units produced by the
end of Year 4 exceeds the original estimate-this difference was not predicted. (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 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

Expert Solution

Depreciation

Depreciation refers to the charge that represents the decline in the value of fixed asset. The formula for depreciation under different methods are

$Straight line depreciation = \frac{Initial cost - Salvage value}{Useful life of asset}$

$U n i t s o f p r o d u c t i o n m e t h o d = (I n i t i a l \cos t - S a l v a g e v a l u e) \times \frac{Y e a r l y P r o d u c t i o n}{T o t a l E s t i m a t e d P r o d u c t i o n}$

$Double declining balance = 2 \times Cost of asset \times Depreciation rate$

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