You have just been hired by Mr. Genie, the manager of Jasmine Incorporated, to assist with the preparation of the year end financial statements. Mr. Genie is trying to calculate the depreciation on a new piece of equipment that was purchased during the year and has come to you for assistance. The new piece of equipment was purchased on June 1, 2020 and the company has a December 31 year end. The company paid $44,000 for the equipment and then had to pay $2,000 in freight and $1,000 in training before the company could start using the equipment. The equipment was put into use on July 1, 2020 and on October 1,2020 the company had to pay $1,000 in repairs. The estimated residual value is $7,000 and the estimated useful life is 8 years or 2,000,000 units. Jasmine Incorporated depreciates using the half year rule in the year of acquisition and disposal The equipment was used to produce 140,000 units in 2020 and 275,000 units in 2021. Management feels that the equipment will be able to produce more units earlier in it's life than it will as it gets older. On January 1, 2022 Jasmine Incorporated sold the equipment for $35,000. Required: a) Calculate the cost of the equipment. b) Calculate the depreciation for 2020 & 2021 under each of the methods below: Units-of-production Straight-line Double-declining-balance c) Prepare the journal entry to record the disposition of the equipment on January 1, 2022 assuming Jasmine Incorporated uses the units-of- production method for calculating depreciation. d) Draft a memo to Mr. Genie telling him which method would give the highest net income in 2020 and which method of depreciation you recommend they use and why