On January 1, 2013, XY S.A. acquires a machine for 70,000. Costs of installing the machine amount to 3,000. The machine is installed on the same day and it is immediately available for use. All payments are made immediately in cash. The residual value is 5,500.The expected use of the machine is 20,000 hours. The actual use of the machine in the years 2013 2017 is as follows:

4,000 hours in 2013

4,500 hours in 2014

4,200 hours in 2015

3,800 hours in 2016

3,500.hours in 2017.

The machine is sold on December 31, 2017 for 6,000. Payment is received in cash on the same day. Determine the cost of the machine, the depreciable amount and the depreciation expense for the years 2013 to 2017. The financial year ends on 31 December. Calculate the depreciation according to the units of production method. Show all accounting entries.