Problem $8-30$A $($Algo$)$ Calculating depreciation expense using four different methods LO $8-2,8-3,8-4,$

$8-6$

References

Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January $1,$ Year $1.$

Purchase price $$86,000$

Delivery cost $$2,000$

Installation charge $$1,000$

Estimated life $5$ years

Estimated units $,145,000$

Salvage estimate $$2,000$

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. $($Round your answers to the nearest dollar amount.$)$

MACRS table: