A company purchased a machine on January 1 of the current year for S550,000. Calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 20,000 units produced, with a salvage value of S50,000). During the machine's 5-year life its unit production was: 3,000, Yr 1 4,000 Yr 2; 5,000 Yr 3; 5,000 Yr 4; and 3,000 hours Yr 5. Depreciation Expense