Question 5: Depreciation (10 marks) A machine costing $550,000 has an estimated residual value of $40,000 and an estimated service life of 12 years. What is the annual depreciation for each of the first two years under the following methods? Assume the company records a full year of depreciation in the year of purchase. Round all answers to the nearest dollar. a. Double declining-balance b. Units of production. Lifetime production is estimated to be 300,000 units. The machine produced 26,000 units in year one, and 29,000 units in year two. c. Straight-line depreciation method