Initial Cost, P = $22,000 Salvage Value at the end of 5 years, S = $2,000.

Depreciable Life, N= 5 Years

Year	Projected Production , units	Actual Production , units
1	4,500	5,000
2	5,000	4,000
3	3,500	3,000
4	5,500	5,000
5	6,500	Not known
Total	25,000

A) Determine the depreciation for year 4 using the UOP method.

B) If the equipment is sold at the end of year 4 for $20,000, what is the recaptured depreciation or loss on this equipment?