Depreciation (10 marks) Mace Company acquired equipment that cost $72,000, which will be depreciated on the assumption that the equipment will last six years and have a $4,700 residual value. Component parts are not significant and need not be recognized and depreciated separately. Several possible methods of depreciation are under consideration. Required: 1. Prepare a schedule that shows annual depreciation expense for the first two years, assuming the following (Round your answer to nearest whole dollar.): a. Declining-balance method, using a rate of 30%. b. Productive-output method. Estimated output is a total of 210,000 units, of which 24,000 will be produced the first year; 36,000 in each of the next two years; 30,000 the fourth year; and 42,000 the fifth and sixth years. c. Straight-line method. Year (a)DB 30% (b) Productive Output (c) SL 1 2 2. Repeat your calculations for requirement 1, assuming a useful life of 10 years, and a declining-balance rate of 20% that reflects the longer life, but the same number of units of production. The residual value is unchanged. Year (a) DB 20% (b) Productive Output (c) SL 1 2