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 Salvaxe estimate 571,000 $ 3.000 $ 2,000 5 years 146,000 $3,000 During Year 1, the machine produced 42,000 units, and during Year 2 it produced 44,000 units. Required o. Determine the amount of depreciation expense for Year 1 and Year 2 using straight line method, b. Determine the amount of depreciation expense for Year 1 and Year 2 using double declining balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method d. 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: 3 rear 7 Year Year property Property, 1 20.00 14.29 2 32.00 24.49 19:20 17.49 4 1152 12:49 5 11.52 5.76 1:02 During Year 1, the machine produced 42.000 units, and during Year 2 it produced 44,000 units. Required a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double declining balance method, c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. 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 5-Year 7-Year Your property, property, 1 20.00 14.29 32.00 24.40 19.20 17.49 4 11.52 12.49 11.52 393 5.70 1292 11.03 4.46 Yeart Year b Depreciation exponse Depreciation expense Depreciation expense Depreciation expense C d 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 $ 71,000 33,000 $2,000 5 years 146,000 $5,000 During Year 1, the machine produced 42,000 units, and during Year 2 it produced 44.000 units. Required a. Determine the amount of depreciation expense for Yeart and Yout 2 using straight line method. b. Determine the amount of depreciation expense for Year and Year 2 using double declining balance method. c. Determine the amount of depreciation expense for Yeart and Year 2 using units of production method d. 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 5-Year 7 Year Year Droperty. property. 1 20.00 14.29 2 32.00 2.49 19.20 17:49 4 12.49 11.52 8. 5076 592 0.93 During Year 1, the machine produced 42,000 units, and during Year 2 it produced 44,000 units. Required a. Determine the amount of depreciation expense for Yeart and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double declining balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. 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 7-Year Year property, property 1 20.00 2 32.00 28.49 3 19.20 17.49 4 11.52 12.49 5 11.52 8.92 3.93 4.46 Year 1 Year 2 b Depreciation expense Depreciation expense Depreciation expense Depreciation expense C d
