Problem 9 - B Depreciation of Property, Plant & Equipment Tumbleweed Company purchased equipment on January 2, Year 1 for $300,000. On that date, the equipment was estimated to have a useful life of 5 years, or 125,000 hours of use, and a residual value of $50,000. The equipment was used for 30,000 hours during Year 1, 20,000 in Year 2, 35,000 in Year 3, 15,000 in Year 4 and 25,000 in Year 5. Requirements: 1) Determine the annual amount of depreciation for each of the four years, using the (a) straight-line method, (b) the units-of-production (output) method, and (c) the double-declining-balance method. Also, determine the total amount of depreciation for the four years for each method. 2) Which methods gives the largest depreciation expense in Year 1? 3) Which method gives the most depreciation over the five-year life of the equipment