Question 5: M&B Co. W.L.L has acquired a new machinery on January 1. The machine costs 160,000 Q.R and installed for 15,000 QR and shipping 5,000 with a four year life and residual value of 10,000 Q.R. The company manager estimates that the machinery will produce 140,000 units of a product during its useful life. However, the records showed that the machine has actually produces the following units: first year, 30,600 units; Second year, 35,200 units; Third year, 42,800 units; and Forth year, 40,400 units. The total number of units produced by the end of year 4 exceeds the original estimate the difference was not predicted. Requirement: 1. Calculate the annual depreciation for the machine over the four-year useful life of the machine under each of the following depreciation methods: Straight-line method. Double-Declining method. 2. Under which of the above methods the company generates higher net income in the first year (assuming all other expenses are consistent).