A company purchased a computer system on January 1. Its cost was $55,000 and it had an estimated salvage value of $10,000. It was expected to have a useful life of 5 years.

Required:

a. To the nearest dollar, whats the depreciation for year 1 using straight-line method? Please prepare the journal entry to record the depreciation.

b. To the nearest dollar, whats the depreciation for year 1 using double-declining method?

c. Assume the computer system is estimated to be used for 1,500 hours in the first year, 1,200 hours the second, 1,000 the third, 800 the fourth, and 500 the fifth (for a total of 5,000 hours). To the nearest dollar, whats the depreciation for year 1 using units of production method?