Engineering economics

Al Mustaqbal company is trying to calculate the depreciation cost for a certain production line they have bought; the production line purchase cost was $500,000. Delivery and insurance charges were $35,000, and installation of the line cost another $50,000. If the assembly line useful life is 5 years and has no salvage value. 1) Use the double decline balance method to identify the annual depreciation and make sure to make full depreciation for the asset. (12 marks) 2) If the production line useful life is expressed in units of production that equals 1,000,000 units. Determine the book value of the production line at the end of the second year if the cumulative production was 200,000 units. (8 marks)