Trinkle Co., Inc., made several purchases of long-term assets in 2016. The details of each purchase are presented here.

New Office Equipment

1.List price: $35,800; terms: 2/10 n/30; paid within discount period.2.Transportation-in: $740.3.Installation: $570.4.Cost to repair damage during unloading: $673.5.Routine maintenance cost after six months: $150.

Basket Purchase of Copier, Computer, and Scanner for $46,400 with Fair Market Values

1.Copier, $24,037.2.Computer, $6,149.3.Scanner, $25,714.

Land for New Warehouse with an Old Building Torn Down

1.Purchase price, $75,900.2.Demolition of building, $4,550.3.Lumber sold from old building, $2,850.4.Grading in preparation for new building, $8,400.5.Construction of new building, $298,000.

RequiredIn each of these cases, determine the amount of cost to be capitalized in the asset accounts.

Office equipment:

Basket purchase:

Land and building:

2. Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2016:

Purchase price$54,800Delivery cost$6,000Installation charge$4,000Estimated life5yearsEstimated units152,000Salvage estimate$4,000

During 2016, the machine produced 48,000 units and during 2017, it produced 50,000 units.

Required:a.Determine the amount of depreciation expense for 2016 and 2017 using straight-line method.

b.Determine the amount of depreciation expense for 2016 and 2017 using double-declining-balance method.

c.Determine the amount of depreciation expense for 2016 and 2017 using units of production method.

d.Determine the amount of depreciation expense for 2016 and 2017 using MACRS, assuming that the machine is classified as seven-year property.(Round your answers to the nearest dollar amount.)

MACRS table:

Year5-Year property,%7-Year property,%120.0014.29232.0024.49319.2017.49411.5212.49511.528.9365.768.9278.9384.46