L02. What is depreciation and how is it computed? a) Use the following information regarding a piece of equipment to answer the following questions: Cost of machine is $20,000 Useful life is 4 years or 15,000 machine hours Residual value is $5,000 i) What is the depreciation expense for the first year using the straight-line method? Assume the equipment was used 3,000 hour the first year ofoperations, what is the depreciation expense for the first year based on machine hours using the units of production method? ii) ii) What is the deprecation expense for the first year using the double-declining-method? 10 0 F6 F7 FS