A machine costing 212,000 with a four-year life and an estimated value is installed in Luther company’s factor

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January 3rd, 2018

Problem 10-5A Depreciation methods LO P1 : A machine costing 212,000 with a four-year life and an estimated value is installed in Luther company’s factor on January 1. The factory manager estimates the machine will produce 485,000 units of product during its life. it actually produces the following units: year 1, 121,800; year 2, 124,400; year 3 120,300; and year 4, 128,500. The total number of units produced by te end of year 4 exceeds the original estimate-this difference was not predicted. (the machine must not be depreciated below its estimated salvage value )Straight-line depreciation1.2.3.4.units of production1.234DDB depreciation for the period End of period

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