Figaro Production bought a machine at the beginning of the year at a cost of $37,000. The estimated useful life was five years and the residual value was $2,000. Assume the estimated productive life of the machine is 17,500 units. Expected annual production was year 1, 3,500 units; year 2, 4,500 units; year 3, 3,500 units; year 4, 3,500 units; and year 5, 2,500 units.

Required:

1. help set up a depreciation schedule for the units-of-production method.
2. Prepare the journal entry to record Year 2 depreciation.