Question 1 Skipper Manufacturing purchased equipment and a delivery vehicle on January 1, 2020. The equipment cost $70,000 and has an estimated useful life of 10 years with a residual value of $7,000. The delivery vehicle cost $225,000 and has an estimated life of 5 years or 100,000 kilometres and a residual value of $25,000. The delivery truck is expected to be driven 15,000 and 35,000 kilometres in 2020 and 2021, respectively. (8 marks) Required 1. Skipper has decided to depreciate the equipment using either the straight-line method or double declining method. Calculate depreciation for the equipment for 2020 and 2021 using the straight-line method AND the double declining method 2. Skipper has decided to depreciate the delivery truck using the units-of-production method. Calculate depreciation for the delivery truck for 2020 and 2021. Show your work for marks. 2020 Depreciation 2021 Depreciation Requirement #1 Equipment - Straight-line method Equipment - Double-Declining method Requirement #2 Delivery Truck - Units-of-Production