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Question - A machine costing $207,000 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 480,000 units of product during its life. It actually produces the following units: 122,800 in Year 1, 123,700 in Year 2, 121,100 in Year 3, 122,400 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: 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.
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