VanHoutte Foods bought machinery on September 10, 2014, for $156,000. It was determined that the machinery would be used for six years or until it produced 200,000 units and then would be sold for about $26,400. Complete the schedule below by calculating annual depreciation to the nearest whole month for 2014, 2015, and 2016. VanHoutte€™s year-end is December 31.

*Round the per unit depreciation expense to three decimal places.
Assume actual units produced of:
2014 ........................ 31,000
2015 ........................ 67,000
2016 ........................ 52,000
Analysis Component: If depreciation is not recorded, what is the effect on the income statement and balancesheet?

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Depreclation Year Straight-Line Units-of-Production