Please help. Thanks. A machine costing $213,800 with a four-year life and an est

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Please help. Thanks.

A machine costing $213,800 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actually produces the following units: 123,000 in 1st year, 123,500 in 2nd year, 120,000 in 3rd year, 135,500 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate-this difference was not predicted. (The machine must not 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 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 Units of Straight Line Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Units of production Units of Production Depreciable Depreciation Depreciation Year Units er unit Expense 123,000 4 Total 123,000

Explanation / Answer

Unit of Production year Depreciation unit Depreciation per unit Depreciation exp 1 123000 0.245 48219.92 2 123500 0.246 48415.94 3 120000 0.239 47043.82 4 135500 0.270 53120.32 502000 196800 Double Declining balance method cost = 213800 , Salvage value = 17000 , Life = 4 years Year Beginning of period book value Depreciation rate Depreciation exp Accumulated dep Book value 1 213800 50% 106900 106900 106900 2 106900 50% 53450 160350 53450 3 53450 50% 26725 187075 26725 4 26725 50% 13363 200438 13363 DDB depreciation formula straight line depreciation rate = 1/4years*100 = 25%

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