Question: Problem 6-23A (Algo) Calculating depreciation expense using three different methods LO 6-2, 6-3, 6-4 Banko Inc. manufactures sporting goods. The following information applies to

6-3, 6-4 Banko Inc. manufactures sporting goods. The following information applies to

a machine purchased on January 1, Year 1: $ 58,000 $ 5,000

Problem 6-23A (Algo) Calculating depreciation expense using three different methods LO 6-2, 6-3, 6-4 Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: $ 58,000 $ 5,000 Purchase price Delivery cost Installation charge $ 3,000 Estimated life 5 years Estimated units 150,000 $ 6,000 Salvage estimate During Year 1, the machine produced 46,000 units and during Year 2, it produced 48,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods: Straight-line b. Double-declining-balance c. Units of production Year 1 Year 2

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