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education.com/aw/CoM CSecure https//newconnect.mheducation.com/8W har8Graded Hom

ID: 2552057 • Letter: E

Question

education.com/aw/CoM CSecure https//newconnect.mheducation.com/8W har8Graded Homework A machine costing $210,000 with a four-year lfe and an estimated $18,000 salvage value ls Installed in Luther Company's factory on January 1 The faciony manager estmates the machine will produce 480,000 units of product during its Ite. It actually produces the following unts 122.700 inst year 122.400 in 2nd year, 120,500 tn 3rd year, 124 400 In 4th year The total number of units produced by the end of year 4 exceeds the oniginal ecmate-his dference wias not predicted. (The machine must not be depreciated below s ectmated salvage value) Requtred Compute deprectacion for each year (and total depreciation of all years combinedj for the machine under each depreciation method Round your per unt depreclation to 2 decimal places. Round your answers to the nearest whole dollar) Complete this question by entering your answers in the tabs below Computa depreciacon for each year (and total depreciation of all years combined) for the machine under each Straighte-ine pe here to search

Explanation / Answer

Straight Line method

Annual Depreciation = (Machine cost - salvage value)/ useful years

Annual Depreciation= (210000 - 18000)/ 4

= (192000)/ 4

= 48000

Straight Line Depreciation Schedule

Year

Annual Depreciation

Accumulated Depreciation

Book value

1

48000

48000

162000

2

48000

96000

114000

3

48000

144000

66000

4

48000

192000

18000

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Straight Line Depreciation Schedule

Year

Annual Depreciation

Accumulated Depreciation

Book value

1

48000

48000

162000

2

48000

96000

114000

3

48000

144000

66000

4

48000

192000

18000