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$ 54,800 $ 6,000 $ 4,000 Purchase price Delivery cost Installation charge Estimated life Estimated units Salvage estimate 5 years 152,000 $ 4,000 During Year
$ 54,800 $ 6,000 $ 4,000 Purchase price Delivery cost Installation charge Estimated life Estimated units Salvage estimate 5 years 152,000 $ 4,000 During Year 1, the machine produced 48,000 units, and during Year 2 it produced 50,000 units. Required a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. (Round your answers to the nearest dollar amount.) MACRS table: 5-Year Year property,% 20.00 32.00 19.20 11.52 11.52 5.76 HNMOON 00 7-Year property,% 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 Year 1 Year 2 a. Depreciation expense b. Depreciation expense c. Depreciation expense d. Depreciation expense
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