A machine costing $211,400 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 486,000 units of product during its life. It actually produces the following units: 121,900 in Year 1 and 123,600 in Year 2. Required: Compute depreciation for the machine's second year of operation under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.)
A machine costing $211,400 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 486,000 units of product during its life. It actually produces the following units: 121,900 in Year 1 and 123,600 in Year 2. Required: Compute depreciation for the machine's second year of operation under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:A machine costing $211,400 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 486,000 units of product during its life. It actually produces the
following units: 121,900 in Year 1 and 123,600 in Year 2.
Required:
Compute depreciation for the machine's second year of operation 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.
Straight Line
Units of
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
Expense
Year
Year 2
DDB
Straight Line
Units of Production >
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