A machine costing $208,800 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 482,000 units of product during its life. It actuallyproduces the following units: year 1, 122,100; year 2, 124,200;year 3, 121,600; and year 4, 124,100. 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 totaldepreciation of all years combined) for the machine under eachdepreciation method. (Round your per unit depreciation to 2 decimalplaces.)
1) Strait Line Depreciation
2)Units of Production
3)Double declining method
A machine costing $208,800 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 482,000 units of product during its life. It actuallyproduces the following units: year 1, 122,100; year 2, 124,200;year 3, 121,600; and year 4, 124,100. 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 totaldepreciation of all years combined) for the machine under eachdepreciation method. (Round your per unit depreciation to 2 decimalplaces.)
1) Strait Line Depreciation
2)Units of Production
3)Double declining method