On August 1, 2021, A&A Company purchased equipment for manufacturing laptop computers for $137,900. The equipment has an estimated useful life of 5 years and an estimated physical life of 7 years. The equipment has an estimated residual value of $1,260 and an estimated salvage value of $0. The equipment is expected to produce 74,000 computers over its estimated useful life. During the 2021 year, the equipment is used to manufacture 5,981 computers. A&A Company has a December 31 year end and follows IFRS. Required: 1. Calculate depreciation expense for the equipment for the 2021 year, assuming that the units of production method is used. (2 marks) 2. Assume that management is considering whether to use the units-of- production or straight-line method to depreciate the equipment. In accordance with generally accepted accounting principles, what factors should be considered in selecting the method of depreciation to be used for a particular asset? (2 marks)