Assume that MHS purchased two additional pieces of equipment on April 1st (the first day of its fiscal year), as follows: 1. The laboratory equipment cost $300,000 and has an expected life of 5 years. The salvage value is 5 percent of cost. No equipment was traded in on this purchase. 2. The radiology equipment cost $800,000 and has an expected life of 7 years. The salvage value is 10 percent of cost. No equipment was traded in on this purchase. For both pieces of equipment:

1. Compute the straight-line depreciation.

2. Compute the double declining balance depreciation.