On April 1, 20X1, Mills Company acquired equipment for $125,000. The estimated useful life is six years, and the estimated residual value is $5,000. Mills estimates that the equipment can produce 25,000 units of product. During 20X1 and 20X2, respectively, 3,000 and 4,200 units were produced. Mills reports on a calendar-year basis.

Required:

Calculate depreciation expense for 20X1 and 20X2 under each of the following methods (assume that Mills calculates depreciation to the nearest month in the year of acquisition):

1. Straight-line method.

2. Production method (units of output).
3. Double-declining balance method.

4. Sum-of-the-years’ digits method.