On April 19, 2019, Stem Corporation purchased equipment for $200,000. It has an expected useful life of 10 years and a residual value of $20,000. It is expected to produce 1,200,000 bindings over its useful life. Production in 2019 was 90,000 and in 2020 production was 134,000. Stem rounds depreciation to the nearest month.

Required

Provide the annual depreciation for 2019 and 2020 under the following three depreciation methods:

1. Straight line

2. Double declining balance

3. Units of production

Organize your answer as below. Show your calculations below the answers.

a) 2019 S 2020 $ b) 2019 $ 2020 $ c) 2019 " 2020 $