Units-of-Production Method

A machine is purchased January 1 at a cost of $74,000. It is expected to produce 140,000 units and have a salvage value of $2,600 at the end of its useful life.

Units produced are as follows:

Year 1	10,500
Year 2	8,200
Year 3	11,400
Year 4	16,000
Year 5	11,500

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.

Units-of-Production Method
Year	Beginning Book Value	Annual Depreciation	Ending Book Value
1	$74,000	$fill in the blank 1	$fill in the blank 2
2		fill in the blank 3	fill in the blank 4
3		fill in the blank 5	fill in the blank 6
4		fill in the blank 7	fill in the blank 8
5		fill in the blank 9	fill in the blank 10