Todd Service Company purchased a copier on January 1, 2016, for $25,000 and paid an additional $500 for delivery charges. The copier was estimated to have a life of four years or 1,000,000 copies. Salvage value was estimated at $1,500. The copier produced 250,000 copies in 2016 and 270,000 copies in 2017.
Compute the amount of depreciation expense for the copier for calendar years 2016 and 2017, using these methods:
d. MACRS, assuming that the copier is classified as five-year property.