Question

On January 2, Year 1, Logan Co. purchased a manufacturing machine for $864,000. The machine has...

On January 2, Year 1, Logan Co. purchased a manufacturing machine for $864,000. The machine has an 8-­year estimated life and a $144,000 estimated salvage value. Logan expects to manufacture 1,800,000 units over the life of the machine. During Year 2, Logan manufactured 300,000 units.

Instructions:

Calculate the Year 2 depreciation expense using (1) sum-of-the-years’-digits depreciation and (2) units of production depreciation.

Please do not copy from Chegg. Only attempt if you are sure about the answer. Solve in a step by step manner, explaining each step.

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