VanHoutte Foods bought machinery on September 10, 2021, for $168,000. It was determined that the machinery would be used for six years or until it produced 260,000 units and then would be sold for about $27,600. Complete the schedule below by calculating annual depreciation to the nearest whole month for 2021, 2022, and 2023. VanHoutte’s year-end is December 31.

*Round the per unit depreciation expense to three decimal places.Assume actual units produced of:

2021 ......................    43,000

2022 ......................     79,000

2023 ......................     64,000

Analysis Component:If depreciation is not recorded, what is the effect on the income statement and balance sheet?

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Depreciation Year Straight-Line Units-of-Production*