Intermediate Accounting-I Q-3: (Chapter-10): A10-8 Depreciation Computation: Mace Company acquired equipment that cost $36,000, which will be depreciated on the assumption that the equipment will last six years and have a $2,400 residual value. Component parts are not significant and need not be recognized and depreciated separately. Several possible methods of depreciation are under consideration. Required (8 Marks): 1. Prepare a schedule that shows annual depreciation expense for the first two years, assuming the following (show computations and round to the nearest dollar): 1. Declining-balance method, using a rate of 30%. 2. 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. 3. Straight-line method