The following information pertains to the equipment acquired by Feghali Industries on Jan. 1, 2002. Use this information to answer parts 1,2 & 3

(1.) Cost $140,000 Residual value $20,000 Estimated life 4 years

Estimated total production = 40,000 units

2002 production = 9,000 units

2003 production = 7,500 units

2004 production = 8,000 units

Required : determine the amortization expense for the year ending Dec. 31/02 assuming the company uses the :

a) straight line method

b) units of production method