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Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated life Estimated units Salvage estimate 145,000 $ 2,000 During Year 1, the machine produced 41,000 units, and during Year 2 it produced 43,000 units. Required: MACRS table: 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. Note: Round your answers to the nearest dollar amount. 5-Year Year property, & 1 PL2345678 $ 86,000 $ 2,000 $ 1,000 20.00 32.00 19.20 11.52 11.52 5.76 7-Year property,% 14.29 24.49 17.49 12.49 5 years 8.93 8.92 8.93 4.46

Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1 , Year 1: During Year 1 , the machine produced 41,000 units, and during Year 2 it produced 43,000 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. Note: Round your answers to the nearest dollar amount. MACRS table: MACRS table

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