A machine costing $210,200 with a four-year life and anestimated $19,000 salvage value is installed in Luther Companyâsfactory on January 1. The factory manager estimates the machinewill produce 478,000 units of product during its life. It actuallyproduces the following units: year 1, 122,000; year 2, 122,800;year 3, 120,600; and year 4, 122,600. The total number of unitsproduced by the end of year 4 exceeds the original estimateâthisdifference was not predicted. (The machine must not be depreciatedbelow its estimated salvage value.)
Required:
Compute depreciation for each year (and total depreciation ofall years combined) for the machine under each depreciation method.(Round your per unit depreciation to 2 decimal places.)
Straight-Line Depreciation
Year
Depreciation Expense
1
2
3
4
Total
Units of Production
Year
Depreciable Units
Depreciation per unit
Depreciation Expense
1
2
3
4
Total
$0
DDB Depreciation for the Period
End of Period
Year
Beginning of Period Book Value
Depreciation Rate
Depreciation Expense
Accumulated Depreciation
Book Value
1
2
0
3
4
0
$0
A machine costing $210,200 with a four-year life and anestimated $19,000 salvage value is installed in Luther Companyâsfactory on January 1. The factory manager estimates the machinewill produce 478,000 units of product during its life. It actuallyproduces the following units: year 1, 122,000; year 2, 122,800;year 3, 120,600; and year 4, 122,600. The total number of unitsproduced by the end of year 4 exceeds the original estimateâthisdifference was not predicted. (The machine must not be depreciatedbelow its estimated salvage value.)
Required:
Compute depreciation for each year (and total depreciation ofall years combined) for the machine under each depreciation method.(Round your per unit depreciation to 2 decimal places.)
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Related questions
A machine costing $257,500 with a four-year life and anestimated $20,000 salvage value is installed in Luther Companyâsfactory on January 1. The factory manager estimates the machinewill produce 475,000 units of product during its life. It actuallyproduces the following units: year 1, 220,000; year 2, 124,600;year 3, 121,800; and year 4, 15,200. The total number of unitsproduced by the end of year 4 exceeds the original estimateâthisdifference was not predicted. (The machine must not be depreciatedbelow its estimated salvage value.) |
| Required: |
| Compute depreciation for eachyear (and total depreciation of all years combined) for the machineunder each depreciation method. (Round your per unitdepreciation to 2 decimal places.) |
| YEAR | DEPRECIATION EXPENSE |
|---|---|
| 1. | |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| TOTAL |
| YEAR | DEPRECIABLE UNITS | DEPRECIATION PER UNIT | DEPRECIATION EXPENSE |
| 1. | |||
| 2. | |||
| 3. | |||
| 4. | |||
| 5. | |||
| TOTAL |
| YEAR | BEGINNING OF PERIOD BOOK VALUE | DEPRECIATION RATE | DEPRECIATION EXPENSE | ACCUMULATED DEPRECIATION | BOOK VALUE |
| 1. | |||||
| 2. | |||||
| 3. | |||||
| 4. | |||||
| 5. | |||||
| TOTAL |
A machine costing $211,600 with a four-year life and anestimated $16,000 salvage value is installed in Luther Companyâsfactory on January 1. The factory manager estimates the machinewill produce 489,000 units of product during its life. It actuallyproduces the following units: year 1, 123,300; year 2, 123,800;year 3, 121,400; and year 4, 120,500. |
1. Straight line depreciation
2. Units of production
3 . DDB depreciation for the period
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