Anslaw Electronics purchased packaging equipment for $600,000 cash on July 1, 2014. Management estimates the equipment can package 800,000 inventory units and will be productive for 5 years. Its salvage value is estimated at $50,000. During 2014, the equipment packaged 130,000 units, with another 140,000 units in 2015.

Instructions: Compute the annual depreciation expense for 2014 and 2015, and book value at December 31, 2015, under the straight-line method and the units of production method .

2014 depreciation = $_______________

2015 depreciation = $_______________

December 31, 2015 book value = $_______________.