1. On January 1, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In year one 25,000 units were produced. In year two 84,000 units were produced. What is the amount of depreciation for year one and year two and the book value of the drill press at December 31, year one and year two, assuming the double declining balance method is used: Depreciation year one - $7,200 Depreciation year two - : $7,200 Book value year one - $28,800 Book value year two - $21,600 Depreciation year one - $3,600 Depreciation year two - $3,600 Book value year one - $32,400 Book value year two- $28,800 Depreciation year one - $7,200 Depreciation year two = $5,760 Book value year one - $28,800 Book value year two = $23,040 Depreciation year one - $14,400 Depreciation year two = $8,640 Book value year one - $21,600 Book value year two = $12,960

2. On January 1, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In year one 25,000 units were produced. In year two 84,000 units were produced. What is the amount of depreciation for year one and year two and the book value of the drill press at December 31, year one and year two, assuming the sum of the years digits method is used: Year one depreciation: $5,455 Year two depreciation: $4,909 Year one book value: $24,545 Year two book value: $19,636 Year one depreciation: $3,000 Year two depreciation: $3,000 Year one book value: $27,000 Year two book value: $24,000 Year one depreciation: $5,455 Year two depreciation: $4,909 Year one book value: $30,545 Year two book value: $25,636 Year one depreciation: $3,600 Year two depreciation: $3,600 Year one book value: $32,400 Year two book value: $28,800