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On January 2, Manning Co. purchases and installs a new machine costing $324,000 with a five year life and an estimated $30,000 salvage value. Management estimates the machine will produce 1,470,000 units of product during its life. Actual production of units is as follows: year 1,355,600; year 2,320,400; year 3,317,000; year 4,343,600; and year 5,138,500. The total number of units produced by the end of year 5 exceeds the original estimatethis difference was not predicted. (The machine must not be depreciated below its estimated salvage value.)
Required:Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciationmethod.
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