On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $24,600. The drill press is expected to last 10 years and has a residual value of $5,400. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 22,000 and 78,000 units, respectively, were produced.

Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the straight-line method is used.

2018 2019

Depreciation

Book Values