A heavy construction firm has been awarded a contract to build a large concrete dam. It is expected that a total of 8 years will be required to complete the work. The firm will buy $600,000 worth of special equipment for the job. During the preparation of the job cost estimate, the following utilization schedule was computed for the special equipment:

At the end of the job, it is estimated that the equipment can be sold at auction for $60,000.
(a) Compute the sum-of-years-digits' depreciation schedule.
(b) Compute the unit-of-production depreciation schedule.

Utilization Utilization Year (hr/yr)Year hrlyr) 800 800 7 2200 8 2200 6000 4000 2 3 4000 1600