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Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price $ 86,000 Delivery cost $

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

Purchase price $ 86,000
Delivery cost $ 2,000
Installation charge $ 1,000
Estimated life 5 years
Estimated units 145,000
Salvage estimate $ 2,000

During Year 1, the machine produced 41,000 units, and during Year 2 it produced 43,000 units.

Required:

Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method.

Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method.

Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method.

Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property.

Note: 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

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