Spacely Sprockets, Inc. invested $4,958,000 for new manufacturing equipment for its plant in Jetson, NY. The equipment was anticipated to have a useful life of 12 years, or 31,700 machine hours and a residual value of $498,000. In its first year in operation the equipment was used for 2,430 hours and an additional 3,000 hours in its second year of usage. The Income Statement for years 1 and 2 of Spacely Sprockets, Inc. are shown below. All items rounded to nearest whole dollar. Round all items to the nearest whole dollar and use rounded values for all future calculations. 1. Calculate the depreciation expense for year 1 and 2 using the Units of Production method. 2. Recalculate the Income Statement for Year 1 and Year 2 including the Depreciation Expense as part of the Operating Expenses