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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

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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 $ 91,000 $ 5,000 $ 3,00 5 years 160,000 $ 3, eee During Year 1, the machine produced 56,000 units, and during Year 2 it produced 58,000 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 2 5-Year property,% 20.ee 32.ee 19.20 11.52 11.52 5.76 7-Year property, 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46

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