Accounting Depreciation-

Samsung Industries purchased an equipment on 1^st July 2019 for a total cost of $80,000. The owner is trying to decide which depreciation method to use for this equipment. The equipment is expected to last for 6 years and have a residual value of $8,000 at the end of its useful life.

Estimated total production is 600,000 units: in the first two years, production is expected to be 100,000 units in year 1 and 60,000 units in year 2.

For the Diminishing Balance method use 25% as the rate.

Required:

(a) What would be the written down value of the equipment at 30^th June 2021 for each depreciation method?

(b) Which depreciation method would give the lowest profit in the first year of the equipments use? Explain your answer.