On 1 January 2016, Yip Ltd acquired additional equipment at a cost of $120 000, less a trade discount of 25 percent. The terms of payment were 2/10, n/30. Payment was made on 20 January 2016. Freight charges were $7500 and installation and testing cost $2500.

The equipment was expected to have a useful life of five years and a salvage value of $3125. During its life, the equipment was expected to produce 775 000 units of output. During the year ended 30 June 2016, the equipment was used to produce 70 000 units.

Calculate the depreciation expense to be charged in the accounts of Yip Ltd, with respect to this new equipment for the financial year ended 30 June 2016, using:

1. The reducing balance method (assuming a rate of 50 percent)

2. The straight-line method 

3. The units-of-production method.