Question: 0 [ 4 marks ] Cavin has purchased equipment for $ 3 0 , 0 0 0 . The equipment is expected to be used

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[4 marks] Cavin has purchased equipment for $30,000. The equipment is expected to be used for seven years, at which point it will have a salvage value of $2,000. Omar anticipates the equipment will be used for 4,000 hours over its useful life. Suppose the machine is used for 400 hours in its first year . What is the difference in depreciation amounts between the double-declining-balance and units-ofproduction depreciation methods? Which method would you recommend? Why?

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