Question

In: Accounting

A machine costing $213,200 with a four-year life and an estimated $16,000 salvage value is installed...

A machine costing $213,200 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 493,000 units of product during its life. It actually produces the following units: 122,600 in Year 1, 122,500 in Year 2, 120,100 in Year 3, 137,800 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not predicted. (The machine cannot 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.)

Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation.

Straight-Line Depreciation
Year Depreciation Expense
1
2
3
4
Total $0

Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production.

Units of Production
Year Units Depreciable Units Depreciation per unit Depreciation Expense
1 122,600
2 122,500
3 120,100
4 137,800
Total $0

Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double-declining-balance.

DDB Depreciation for the Period End of Period
Year Beginning of Period Book Value Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value
1 % $0
2 % 0
3 % 0
4 % 0
Total $0

Solutions

Expert Solution


Related Solutions

A machine costing $213,600 with a four-year life and an estimated $16,000 salvage value is installed...
A machine costing $213,600 with a four-year life and an estimated $16,000 salvage value is installed in Tonys Company’s factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life. It actually produces the following units: 121,800 in Year 1, 123,500 in Year 2, 121,100 in Year 3, 137,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $207,200 with a four-year life and an estimated $16,000 salvage value is installed...
A machine costing $207,200 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 478,000 units of product during its life. It actually produces the following units: 123,400 in 1st year, 124,200 in 2nd year, 120,900 in 3rd year, 119,500 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $214,800 with a four-year life and an estimated $20,000 salvage value is installed...
A machine costing $214,800 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produces the following units: 121,800 in 1st year, 122,600 in 2nd year, 121,500 in 3rd year, 131,100 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $213,800 with a four-year life and an estimated $19,000 salvage value is installed...
A machine costing $213,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produces the following units: 121,700 in 1st year, 123,800 in 2nd year, 121,100 in 3rd year, 130,400 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $209,200 with a four-year life and an estimated $18,000 salvage value is installed...
A machine costing $209,200 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 478,000 units of product during its life. It actually produces the following units: 123,000 in 1st year, 124,100 in 2nd year, 121,200 in 3rd year, 119,700 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $209,000 with a four-year life and an estimated $17,000 salvage value is installed...
A machine costing $209,000 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 480,000 units of product during its life. It actually produces the following units: 122,500 in Year 1, 124,300 in Year 2, 121,600 in Year 3, 121,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $209,400 with a four-year life and an estimated $15,000 salvage value is installed...
A machine costing $209,400 with a four-year life and an estimated $15,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 486,000 units of product during its life. It actually produces the following units: 122,800 in 1st year, 123,200 in 2nd year, 121,500 in 3rd year, 128,500 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed...
A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: 220,000 in Year 1, 124,600 in Year 2, 121,800 in Year 3, and 15,200 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not...
A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed...
A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: 220,000 in 1st year, 124,600 in 2nd year, 121,800 in 3rd year, 15,200 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $209,800 with a four-year life and an estimated $17,000 salvage value is installed...
A machine costing $209,800 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 482,000 units of product during its life. It actually produces the following units: 123,200 in 1st year, 123,700 in 2nd year, 119,800 in 3rd year, 125,300 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT