A textile company bought machinery for $$200,000$ on the $1$st of January that has an approximate $10$ years of useful life and about $$20,000$ estimated residential value. The asset is sold by the firm at its residential value during the end of $10$th year. The expected production units of the machinery is $15,000$ during the course of its useful life. The current production pattern of the machinery is:

Year

Production

$1-3$

$2,000$ units per year

$4-7$

$1,500$ units per year

$8-10$

$1,000$ units per year

Determine the Total Amount of Depreciation with the Help of the Units of Production Method. Pass the Required Entries of the Journal and Prepare the Machinery A$/$c$.$

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