Problem:
A machine costing $210,000 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory 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, 121,700; year 2, 123,800; year 3, 121,000; and year 4, 118,500.
Required:
Question: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.
Note: Please describe comprehensively and provide step by step solution.