Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price $ 82,500 Delivery cost $ 3,000 Installation charge $ 1,000 Estimated life 5 years Estimated units 157,000 Salvage estimate $ 8,000 During Year 1, the machine produced 53,000 units and during Year 2, it produced 55,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods: Year 1 Year 2 a.

Straight-line b. Double-declining-balance c. Units of production