A machine costing $215,600 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 489,000 units of product during its life. It actuallyproduces the following units: 121,500 in 1st year, 123,000 in 2ndyear, 121,500 in 3rd year, 133,000 in 4th year. The total number ofunits produced by the end of year 4 exceeds the originalestimateâthis difference was not predicted. (The machine must notbe depreciated below its estimated salvage value.)
Compute depreciation for each year (and total depreciation ofall years combined) for the machine under each Unit of productionand Compute depreciation for each year (and total depreciation ofall years combined) for the machine under eachDouble-declining-balance.
A machine costing $215,600 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 489,000 units of product during its life. It actuallyproduces the following units: 121,500 in 1st year, 123,000 in 2ndyear, 121,500 in 3rd year, 133,000 in 4th year. The total number ofunits produced by the end of year 4 exceeds the originalestimateâthis difference was not predicted. (The machine must notbe depreciated below its estimated salvage value.)
Compute depreciation for each year (and total depreciation ofall years combined) for the machine under each Unit of productionand Compute depreciation for each year (and total depreciation ofall years combined) for the machine under eachDouble-declining-balance.