Question 6: Mikey is in the business of making hammers. He purchases a new piece of equipment for $15,000 in credit. He plans to use the units of production method of depreciation. The equipment is expected to produce approximately 5,000 hammers, at which point it will be valueless. During the first year after buying the equipment, Mikey uses it to produce 1,500 hammers. To record the purchase: Debit Credit When the purchase is eventually paid for: Debit Credit To record depreciation each year: Debit Credit