A machine costing $212,800 with a four-year life and an estimated $1 January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 123,200 in Year 2, 120,300 in Year 3, 135,500 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. Units of Straight Line Double declining
A machine costing $212,800 with a four-year life and an estimated $1 January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 123,200 in Year 2, 120,300 in Year 3, 135,500 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. Units of Straight Line Double declining
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A machine costing $212,800 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 492,000 units of product during its life. It actually produces the
following units: 123,000 in Year 1, 123,200 in Year 2, 120,300 in Year 3, 135,500 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.
Straight Line
Units of
Production
Double
declining
balanc
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double-
declining-balance.
Double-declining-balance Depreciation for the
End of Period
Year
Beginning of
Period Book
Period
Depreciation
Rate
Depreciation
Expense
Accumulated
Book Value
Depreciation
Value
Year 1
%
$
0
Year 2
%
0
Year 3
%
0
Year 4
%
0
Total
$
0
< Units of Production
Double declining balance
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