The Jerome company purchased a machine on Dec 31, 20x2 at a cost of $750,000. Transportation and isntallation costs amounted to $20,000 and $30,000 respectively. The machine's residual value is expected to be $200,000. Management is unsure as to what depreciation method to use and wants to know what the annual depreciation expense would be in 20x3 and 20x4 under the following methods:

A) Diminishing balance method at the rate of 20%

B) Units of production Method. Assume a total useful life of 1,200,000 hours and that 150,00 and 175,000 are expected to be used in 20x3 and 20x4 respectively.