Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2016: Purchase price $ 90,800

Delivery cost $ 4,000

Installation charge $ 3,000

Estimated life 5 years

Estimated units 153,000 Salvage estimate $ 6,000

During 2016, the machine produced 49,000 units and during 2017, it produced 51,000 units.

Required: a. Determine the amount of depreciation expense for 2016 and 2017 using straight-line method. Depriation expense 2016 2017 b. Determine the amount of depreciation expense for 2016 and 2017 using double-declining-balance method

Depriation expense 2016 2017

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

Depriation expense 2016 2017

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 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

depriation expense 2016 2017