3) On May 1, 2020, Chomps buys a piece of equipment for $75,000 They expect to use the equipment to generate revenue for 6 years, at which time they believe we can sell the equipment for $3,000. Using Straight Line, what is annual depreciation expense on the equipment? Using units of the production and the estimated levels of production below, prepare a depreciation schedule for the Equipment.

Year Expected Units of Production Beginning Book Value Depreciation Expense Ending Book Value 1 50,000 2 70,000 3 55,000 4 65,000 5 80,000 6 40,000