On October 1, 2016, the Allegheny Corporation purchased machinery for $314,000. The estimated service life of the machinery is 10 years and the estimated residual value is $6,000. The machine is expected to produce 550,000 units during its life. Required: Calculate depreciation for 2016 and 2017 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service.

Straight-Line Depreciation
	Choose Numerator:	/	Choose Denominator:	=	Annual Depreciation
		/		=	Annual Depreciation
		/		=
Year	Annual Depreciation	x	Fraction of Year	=	Depreciation Expense
2016		x		=
2017		x		=

Sum-of-the-years' digits depreciation
	Depreciable Base	x	Rate per Year	x	Fraction of Year	=	Depreciation Expense
10/1/2016 through 12/31/2016		x		x		=
Total depreciation expense - 2016
1/1/2017 through 9/30/2017		x		x		=
10/1/2017 through 12/31/2017		x		x		=
Total depreciation expense - 2017

	Depreciation for the Period				End of Period
Annual Period	Beginning of Period Book Value	Depreciation Rate	Fraction of Year	Depreciation Expense	Accumulated Depreciation	Book Value
2016						$0
2017					$0	$0

	Depreciation for the Period				End of Period
Annual Period	Beginning of Period Book Value	Depreciation Rate	Fraction of Year	Depreciation Expense	Accumulated Depreciation	Book Value
2016						$0
2017					$0	$0

Select formula for Units of Production Depreciation:
Calculate 2016 depreciation expense:
Depreciation per unit rate
Units produced in 2016
Depreciation in 2016
Calculate 2017 depreciation expense:
Depreciation per unit rate
Units produced in 2017
Depreciation in 2017