Production Company purchased an equipment in cash on January 1, 2019 with the following information: a) Purchase price: $90000 b) Attorney's fee: $50000 c) Two year insurance policy: $25000 The equipment has its expected useful life of 9 years with expected units produced 90,000. The equipment can be sold for $1,000 after 9 years of usage. Actual units produced were 11,000 in 2019 and 9,500 in 2020. Required; 1. Prepare journal entry for the transaction on January 1, 2019. 2. Compute depreciation expense for 2019 and 2020 using (a) the straight-line method, (b) units of activity method, and (c) the double reducing balance method. 3. Which depreciation method do you prefer? Why? (5.0 marks)