1. Duggin Corp. purchased equipment with a cost of $70,000 at the beginning of 2017. The equipment has an estimated life of 25 years or 25,000 units of product. The estimated residual value is $7,500. During 2017, 1,100 units of product were produced with this machinery. Determine the following:

A.	Amount of total accumulated depreciation at December 31, 2017, using units-of-production depreciation
B.	Book value at the end of 2017 using straight-line depreciation
C.	Why would the company choose units-of-production depreciation instead of straight-line?

2. Red Skys, Inc. purchased equipment at the beginning of 2016 for $140,000. The company decided to depreciate the equipment over a 10-year period using the double-declining-balance method. The company estimated the equipment's salvage value at $12,000. Show how the costs should be presented on Red Sky's financial statements at December 31, 2017. Label the statements properly.