Texts: Raine Industries bought a machine at the beginning of the year at a cost of $40,000. The estimated useful life was five years and the residual value was $2,000. Assume the estimated productive life of the machine is 19,000 units. Expected annual production was year 1, 3,800 units; year 2, 4,800 units; year 3, 3,800 units; year 4, 3,800 units; and year 5, 2,800 units.
Required:
Complete a depreciation schedule for the units-of-production method.
Prepare the journal entry to record Year 2 depreciation.