A machine costing $209,400 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 476,000 units of product during its life. It actually produces the following units: 122,800 in Year 1, 123,400 in Year 2, 120,800 in Year 3, 119,000 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.) Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) SEE PICTURES !!!! Compute depreciation for each year (and total depreciation of all years combined) forthe machine under each depreciation method. (Round your per unit depreciation to 2decimal places. Round your answers to the nearest whole dollar.)Complete this question by entering your answers in the tabs below.Straight LineUnits ofProductionDDBCompute depreciation for each year (and total depreciation of all years combined) for the mdeclining-balance.DDB Depreciation for the PeriodEnd of PeriodBeginning ofPeriod BookDepreciation DepreciationRateAccumulatedYearBook ValueExpenseDepreciationValue1$%%Total$< Units of ProductionDDB >2.3.4. A machine costing $209,400 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory onJanuary 1. The factory manager estimates the machine will produce 476,000 units of product during its life. It actually produces thefollowing units: 122,800 in Year 1, 123,400 in Year 2, 120,800 in Year 3, 119,000 in Year 4. The total number of units produced by theend of Year 4 exceeds the original estimate-this difference was not predicted. (The machine cannot be depreciated below itsestimated salvage value.)Required:Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.(Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.)Complete this question by entering your answers in the tabs below.Units ofProductionStraight LineDDBCompute depreciation for each year (and total depreciation of all years combined) for the machine under the Units ofproduction.Units of ProductionDepreciationper unitDepreciationExpenseYearUnitsUnits1122,8002123,4003120,8004119,000Total$< Straight LineDDB>

Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Answered: A machine costing $209,400 with a…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter9: Depreciation (deprec)

Section: Chapter Questions

Problem 1R: Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an...

See similar textbooks

Related questions

Question

A machine costing $209,400 with a four-year life and an estimated $19,000 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: 122,800 in Year 1, 123,400 in Year 2, 120,800 in Year 3, 119,000 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.)

SEE PICTURES !!!!

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.
Straight Line
Units of
Production
DDB
Compute depreciation for each year (and total depreciation of all years combined) for the m
declining-balance.
DDB Depreciation for the Period
End of Period
Beginning of
Period Book
Depreciation Depreciation
Rate
Accumulated
Year
Book Value
Expense
Depreciation
Value
1
$
%
%
Total
$
< Units of Production
DDB >
2.
3.
4.

A machine costing $209,400 with a four-year life and an estimated $19,000 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: 122,800 in Year 1, 123,400 in Year 2, 120,800 in Year 3, 119,000 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
Production
Straight Line
DDB
Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of
production.
Units of Production
Depreciation
per unit
Depreciation
Expense
Year
Units
Units
1
122,800
2
123,400
3
120,800
4
119,000
Total
$
< Straight Line
DDB
>

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions