Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1.

Purchase price	$55,800
Delivery cost	$4,000
Installation charge	$2,000
Estimated life	5	years
Estimated units	142,000
Salvage estimate	$5,000

During Year 1, the machine produced 38,000 units, and during Year 2 it produced 40,000 units.

Required

1. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method.
2. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method.
3. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method.
4. 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 1 2 3 4 5 6 7 8 5-Year property,% 20.00 32.00 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 Year 1 Year 2 a. Depreciation expense b. Depreciation expense C. Depreciation expense d. Depreciation expense