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On June 9, 2016, Oriole Company purchased manufacturing equipment at a cost of $344,670. Oriole estimated that the equipment will produce 600,236 units over its 4-year useful life, and have a residual value of $14,540. The company has a December 31 fiscal year end and has a policy of recording a half-year's depreciation in the year of acquisition.
Problem 1: Calculate the depreciation expense under the units-of-production method, assuming the actual number of units produced was 70,680 in 2016 and 118,180 in 2017. (Round cost per unit to 2 decimal places, e.g. 5.27 and round final answers to 0 decimal places, e.g. 5,275.)
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