Delta Machine Company purchased a computerized assembly machine for $97,000 on January 1, Year 1. Delta Machine Company estimated that the machine would have a life of four years and a $19,000 salvage value. Delta Machine Company uses the straight-line method to compute depreciation expense. At the beginning of Year 3, Delta discovered that the machine was quickly becoming obsolete and would have little value at the end of its useful life. Consequently, Delta Machine Company revised the estimated salvage to only $3,000. It did not change the estimated useful life of the machine. Compute the depreciation expense for each of the four years. Years Depreciation Expense Year 1 Year 2 Year 3 Year 4 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 $ 86,000 $ 2,000 $ 1,000 5 years 145,000 $ 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 each of the following methods: Year 1 Year 2 a. Straight-line b. Double-declining-balance c. Units of production