Compute the depreciation for Townsend for the first and second years of use by each of the following methods:

• straight-line
• units-of-production (1,200 hours the first year; 2,250 hours the second year)
• double-declining balance

Townsend Fabrication Inc. Straight-Line Deprecation Method (year 1 and year 2) Problem details: Townsend Fabrication Inc. purchased new equipment on January 1, 2020 for $360,000. The equipment as an estimated residual value of $10,000. The expected useful life is 5 years or 14,000 operating hours. Year 1 Calculation: Year 2 Calculation: Journal Entry for Year 1 Depreciation: Date Account Debit Credit Townsend Fabrication Inc. Unit-of-Production Deprecation Method (year 1 and year 2) Problem details: Townsend Fabrication Inc. purchased new equipment on January 1, 2020 for $360,000. The equipment as an estimated residual value of| $10,000. The expected useful life is 5 years or 14,000 operating hours. Year 1 Calculation: Year 2 Calculation: Journal Entry for Year 1 Depreciation: Date Account Debit Credit Townsend Fabrication Inc. Double-Declining Balance Deprecation Method (year 1 and year 2) Problem details: Townsend Fabrication Inc. purchased new equipment on January 1, 2020 for $360,000. The equipment as an estimated residual value of $10,000. The expected useful life is 5 years or 14,000 operating hours. Year 1 Calculation: Year 2 Calculation: Journal Entry for Year 1 Depreciation: Date Account Debit Credit Questions: Question #1: Which depreciation method results in the highest cumulative dollar amount in year 1 and year 2? Answer: Question #2: Over the entire life of the asset, which depreciation method will result in the most accumulated depreciation? Answer: Question #3: Which depreciation method is typically used to depreciate an intangible asset, such as trademark or a patent? Answer: Question #4: If a company has purchased rights to a natural resource, which deprecation method most closely reflects the calculation of depletion