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*** I need step by step instructions in the below questions*** Banko Inc. manufactures sporting goods. AThe following information applies to a machine purchased on

*** I need step by step instructions in the below questions***

Banko Inc. manufactures sporting goods. AThe following information applies to a machine purchased on January 1, 2016:

Purchase price

$

71,500

Delivery cost

$

5,000

Installation charge

$

1,000

Estimated life

5

years

Estimated units

143,000

Salvage estimate

$

6,000

During 2016, the machine produced 39,000 units and during 2017, it produced 41,000 units.

Required:

a.

Determine the amount of depreciation expense for 2016 and 2017 using straight-line method.

b

Determine the amount of depreciation expense for 2016 and 2017 using double-declining-balance method.

c.

Determine the amount of depreciation expense for 2016 and 2017 using units of production method.

d.

Determine the amount of depreciation expense for 2016 and 2017 using MACRS, assuming that the machine is classified as seven-year property. (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

Determine the amount of depreciation expense for 2016 and 2017 ?

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