Quality Producers acquired factory equipment on 1 January 20X5, costing $168,000. Component parts are not significant and need not be recognized and depreciated separately. In view of pending technological developments, it is estimated that the machine will have a resale value upon disposal in four years of $60,000 and that disposal costs will be $4,000. The company has a fiscal year-end that ends on 31 December. Data relating to the equipment follow: Estimated service life: Years Service-hours 20,000 Actual operation data Calendar Year Service Hours 20x5 20x6 20x7 20x8 5,700 5,000 4,800 4,400