Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2016:
Purchase price ..... $ 70,000
Delivery cost ....... $ 3,000
Installation charge .... $ 1,000
Estimated life 5 years
Estimated units ..... 140,000
Salvage estimate ..... $ 4,000
During 2016, the machine produced 36,000 units and during 2017, it produced 38,000 units.
Required
Determine the amount of depreciation expense for 2016 and 2017 using each of the following methods:
a. Straight-line.
b. Double-declining-balance.
c. Units of production.
d. MACRS, assuming that the machine is classified as seven-year property.