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9 Problem 8-30A Calculating depreciation expense using four different methods LO 8-2, 8-3, 8-4, 8-6 Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: 0.25/1 points awarded Scored Purchase price Delivery cost Installation charge Estimated life Estimated units Salvage estimate $ 70,500 $ 8,000 $ 2,000 5 years 151,000 $ 5,00 During Year 1, the machine produced 47,000 units, and during Year 2 it produced 49,000 units. Required a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method, c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. (Round your answers to the nearest dollar amount.) MACRS table: 5-Year 7-Year Year property, property, 1 20.00 14.29 2 32.00 24.49 3 19.20 17.49 4 11.52 12.49 5 11.52 8.93 6 5.76 8.92 8.93 8 4.46 a b. Depreciation expense Depreciation expense Depreciation expense Depreciation expense Year 1 Year 2 $ 14,100 $ 14,100 $ 30,200 $ 18,120 $ 23,500 $ 24,500 $ 10,789 $ 18,490 C. d

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