Business, 04.04.2020 11:55 bitterswt01
A machine costing 211800 with a four year and an estimated 15000 salvage value is installed in Luther company's factory. On January 1 the factory manager estimates the machine will produce 492000 units of product during its life. It actually produces the following units: year 1, 121,400; year 2, 122,400; year 3, 119,600; and year 4 118,200. 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:
Prepare a table with the following column heading and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. The headings are Year, Straight-Line, Units-of-Production, and Double-Declining-Balance.
Answers: 2
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A machine costing 211800 with a four year and an estimated 15000 salvage value is installed in Luthe...
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