A machine costing $210,000 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 485,000 units of product during its life. It actually produces the following units: 122.900 in Year 1, 123,900 In Year 2 120,200 in Year 3. 128,000 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 Straight Line DOB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance. DDB Depreciation for the Period End of Period Beginning of Period Book Value Depreciation Depreciation Rate Accumulated Depreciation Year Book Value Éxpense 2 3 4 Total « Units of Production DDB
A machine costing $210,000 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 485,000 units of product during its life. It actually produces the following units: 122.900 in Year 1, 123,900 In Year 2 120,200 in Year 3. 128,000 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 Straight Line DOB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance. DDB Depreciation for the Period End of Period Beginning of Period Book Value Depreciation Depreciation Rate Accumulated Depreciation Year Book Value Éxpense 2 3 4 Total « Units of Production DDB
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 4CE: Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the...
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Step 1 Depreciation under straight line method, DDB and Units of production method
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VIEWStep 3 Calculation of depreciation under double declining balance method
VIEWStep 4 Calculation of depreciation under units of production method
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