Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018:
Purchase price
$ 58,000
Delivery cost
$ 5,000
Installation charge
$ 3,000
Estimated life
5 years
Estimated units
150,000
Salvage estimate
$ 6,000
During 2018, the machine produced 46,000 units and during 2019, it produced 48,000 units.
Required
Determine the amount of depreciation expense for 2018 and 2019 using each of the following methods:
a. Straight-line
b. Double-declining-balance
c. Units of production
2018
2019