On January 1, 2021, Morrow Inc. purchased a spooler at a cost of $40,000. The equipment is expected to last eight years and have a residual value of $4,000. During its eight-year life, the equipment is expected to produce 250,000 units of product. In 2021 and 2022, 42,000 and 76,000 units, respectively, were produced.

Required: Compute depreciation for 2021 and 2022 and the book value of the spooler at December 31, 2021 and December 31, 2022, assuming the sum-of-the-years'-digits method is used.

	2021	2022
Depreciation
Book value