A machine costing $207,400 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 476,000 units of product during its life. It actually produces the following units: 122,400 in Year 1, 123,400 in Year 2, 120,300 in Year 3, 119,900 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.) Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double-declining-balance.
A machine costing $207,400 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 476,000 units of product during its life. It actually produces the following units: 122,400 in Year 1, 123,400 in Year 2, 120,300 in Year 3, 119,900 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
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production.
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation.
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double-declining-balance.
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