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A machine costing $216,800 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 492,000 units of product during its life. It actually produces the following units: 121,700 in Year 1, 123,700 in Year 2, 119,900 in Year 3, 136,700 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.
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.)
ABC limited which operates a supermarket received compensation from DEF Insurance for the loss of canned products destroyed by an accident in its warehouse. For
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For the above transactions and events determine whether a provision should be recognised and provide a rationale for your response.
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