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.

Compute depreciation for 2021 and the book value at December 31, 2021 using the

following methods:

a. Straight-line

b. Units-of-production

c. Sum-of-the-years digits

d. Double-declining-balance