Units-of-Production Method

A machine is purchased January 1 at a cost of $56,290. It is expected to produce 129,000 units and have a salvage value of $3,400 at the end of its useful life.

Units produced are as follows:

Year 1 10,400

Year 2 8,000

Year 3 11,300

Year 4 15,700

Year 5 11,300

Required:

Prepare a schedule showing depreciation for each year and the book value at the end of each year using the units-of-production method (round calculations to two decimal places).

Units-of-Production Method

Beginning Book Value Annual Depreciation Ending Book Value

year 1 $ $ $

year 2 $ $ $

year 3 $ $ $

year 4 $ $ $