Duluth Ranch, Inc. purchased a machine on July 1, 2018. The cost of the machine was $34,000. Its estimated residual value was $10,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 2,500 units in 2018 and 3,200 units in 2019.

Required:

Part A - Calculate depreciation expense for 2018 and 2019 using the straight-line method.

Part B - Calculate the depreciation expense for 2018 and 2019 using the units-of-production method.