Investments: Property, Plant, and Equipment and intangible Assets 10-16 Depreciation Calculations On January 1, 2017, Clauser Company purchased a $79,000 machine. The estimated life of the machine was four years, and the estimated salvage value was $4,000. The machine had an estimated useful life in productive output of 90,000 units. Actual output for the first two years was: 2017, 25,000 units: 2018, 18,000 units. Required: 1. Compute the amount of depreciation expense for the first year, using each of the following methods: Straight-line b. Units-of-production 2. What was the carrying amount of the machine at the end of the first year, assuming that straight- line depreciation was used? 3. If the machine is sold at the end of the third year for $20,000, how much should the company report as a gain or loss (assuming straight-line depreciation)