Problem 8-2B Depreciation methods P1 On January 2, Manning Co. purchases and installs a new machine costing $324,000 with a five-year life and an estimated $30,000 salvage value. Management estimates the machine will produce 1,470,000 units of product during its life. Actual production of units is as follows: 355,600 in 1st year, 320,400 in 2nd year; 317,000 in 3rd year; 343,600 in 4th year; 138,500 in 5th year. The total number of units produced by the end of year 5 exceeds the original estimate-this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) Required Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Year Straight-Line Units-of-Production Double-Declining-Balance Check DDB Depreciation, year 3, $46,656; U-of-P Depreciation, year 4, $68,720