Italian Construction Company purchased a new crane for $470,000 at the beginning of year 1. The crane has an estimated residual value of $60,000 and an estimated useful life of five years. The crane is expected to last 200,000 hours. It was used 50,000 hours in year 1; 45,000 hours in year 2; 45,500 hours in year 3; 35,000 hours in year 4; and 25,000 hours in year 5.

Compute the unit of production for the crane for each year assuming the following depreciation method:

Units of Production Method
	Cost	Unit of Production
Date of Purchase	$470,000
End of First Year	$470,000
End of Second Year	$367,500
End of Third Year	$275,250
End of Fourth Year	$183,000
End of Fifth Year	$111,250