On June 30, 2013, Sun Equipment purchased a precision laser-guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to be depreciated using the units-of-production method. During the six months of 2013, 24,000 units of product were produced. During 2014, 70,000 units were produced.

Sun would report depreciation in 2013 of: