7 Save Answer Giant Industries purchased a machine on 1 January 2018 for a total cost of $40,000. The owner is trying to decide which depreciation method to use for the machine. The machine is expected to last for 4 years and have a residual value of $4,000 at the end of its useful life. Estimated total production is 150,000 units, broken down as: year 1 - 50,000 units; year 2-30,000 units; year 3-50,000 units; and year 4 - 20,000 units. For the Reducing Balance method use 44% as the rate. There are two parts to this question. (a) Calculate depreciation for the first 2 years of the machine's life (using each of the three depreciation methods) and the carrying amount of the machine at the end of year 2. Round to the nearest whole dollar. You can copy and paste the table below to assist you in answering this question (4.5 marks) Straight Line Depreciation Expense for 31 December 2018 Depreciation Expense for 31 December 2019 Written Down Value as at 31 December 2019 Units of Use Reducing Balance (b) Based on your depreciation calculations from part (a), which depreciation method would result in Giant Industries reporting the highest profit in the first year of the machine's use? Explain your