A machine costing $211,600 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 489,000 units of product during its life. It actually produces the following units: 122,300 in Year 1, 123,800 in Year 2, 119,700 in Year 3, 133,200 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. Year Year 1 Year 2 Year 3 Units of Production Straight Line Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Year 4 Total Units Double declining balance Units of Production Depreciable Units 122.300 123,800 119,700 133,200 Depreciation per unit Depreciation Expense

A machine costing $211,600 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 489,000 units of product during its life. It actually produces the following units: 122,300 in Year 1, 123,800 in Year 2, 119,700 in Year 3, 133,200 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. Year Year 1 Year 2 Year 3 Units of Production Straight Line Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Year 4 Total Units Double declining balance Units of Production Depreciable Units 122.300 123,800 119,700 133,200 Depreciation per unit Depreciation Expense

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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