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1 Problem 8-30A (Algo) Calculating depreciation expense using four different methods LO 8-2, 8-3, 8-4, 8-6 10 points 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 $ 85,800 $ 5,000 $ 2,000 5 years 148,000 $ 4,000 During Year 1, the machine produced 44,000 units, and during Year 2 it produced 46,000 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 Year property,% 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 8.92 7 8.93 8 4.46 5.76