Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2016:

Purchase price $ 70,500

Delivery cost $ 6,000

Installation charge $ 1,000

Estimated life 5 years

Estimated units 149,000

Salvage estimate $ 3,000

During 2016, the machine produced 45,000 units and during 2017, it produced 47,000 units.

Required:

a. Determine the amount of depreciation expense for 2016 and 2017 using straight-line method.

b. Determine the amount of depreciation expense for 2016 and 2017 using double - declining - balance method.

c. Determine the amount of depreciation expense for 2016 and 2017 using units of production method.

d. Determine the amount of depreciation expense for 2016 and 2017 using MACRS, assuming that the machine is classified as seven year property. (Round your answer to the nearest dollar amount.)

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