Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1:

Purchase price	$	75,000
Delivery cost	$	3,000
Installation charge	$	2,000
Estimated life		5	years
Estimated units		154,000
Salvage estimate	$	3,000

During Year 1, the machine produced 50,000 units, and during Year 2 it produced 52,000 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:

Year	5-Year property,%			7-Year property,%
1		20.00			14.29
2		32.00			24.49
3		19.20			17.49
4		11.52			12.49
5		11.52			8.93
6		5.76			8.92
7					8.93
8					4.46

Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated life Estimated units Salvage estimate $ 75,000 $ 3,000 $ 2,000 5 years 154,000 $ 3,000 During Year 1, the machine produced 50,000 units, and during Year 2 it produced 52,000 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 7-Year Year property,% property,% 1 20.00 14.29 2 32.00 24.49 3 19.20 17.49 4 11.52 12.49 5 11.52 8.93 6 5.76 8.92 7 8.93 8 4.46 Year 1 Year 2 a. Depreciation expense b. Depreciation expense C. Depreciation expense d. Depreciation expense