On January $1,2021,$ Morrow Inc. purchased a spooler at a cost of $$40,000.$ The equipment is expected to last eight years and have a residual value of $$4,000.$ During its eight$-$year life, the equipment is expected to produce $250,000$ units of product. In $2021$ and $2022,42,000$ and $76,000$ units, respectively, were produced.

Required:

Compute depreciation for $2021$ and $2022$ and the book value of the spooler at December $31,2021$ and December $31,2022,$ assuming the units$-$of$-$production method is used.