A machine costing $212,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's fac January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produce following units: 122,900 in Year 1, 124,000 in Year 2, 120,200 in Year 3, 129,900 in Year 4. The total number of units produced end of Year 4 exceeds the original estimate-this difference was not predicted, Note: The machine cannot be depreciated be estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation n 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 balance 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 50 % $ 0 Year 2 50% 0 Year 3 50 % 0 Year 4 50 % 0 Total $ 0 < Units of Production Double declining balance >
A machine costing $212,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's fac January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produce following units: 122,900 in Year 1, 124,000 in Year 2, 120,200 in Year 3, 129,900 in Year 4. The total number of units produced end of Year 4 exceeds the original estimate-this difference was not predicted, Note: The machine cannot be depreciated be estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation n 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 balance 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 50 % $ 0 Year 2 50% 0 Year 3 50 % 0 Year 4 50 % 0 Total $ 0 < Units of Production Double declining balance >
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 $18,000 salvage value is installed in Luther Company's factory on
January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produces the
following units: 122,900 in Year 1, 124,000 in Year 2, 120,200 in Year 3, 129,900 in Year 4. The total number of units produced by the
end of Year 4 exceeds the original estimate-this difference was not predicted. 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
balance
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
50 %
$
0
Year 2
50%
0
Year 3
50 %
0
Year 4
Total
50 %
0
$
0
<
Units of Production
Double declining balance
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