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Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Parchase price Delivery cost Installation charge Estimated

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Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Parchase price Delivery cost Installation charge Estimated life Estimated units Salvage estimate $ 71,500 $ 5,000 $1,000 5 years 143,000 $ 6,000 During Year 1, the machine produced 39,000 units, and during Year 2 it produced 41,000 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 Your property, property. 1 20.00 14.29 2 32.00 24.49 3 19.20 17.49 4 11.52 12.49 11.52 8.93 6 5.76 8.92 8.93 Year 1 Year 2 b Depreciation experts Depreciation expense Depreciation expenso Depreciation expense C d

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