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
Year Depeciation Expense 1 2 3 4 Total
2. Units of production
Year depreciable units Depreciation per unit Depreciation expense 1 2 3 4 Total
3 . DDB depreciation for the period
Year Beggining of period book value
Depreciation rate Depreciation Expense Accumulated Depreciation Book Value 1 2 3 4
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
|
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 $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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