On June $9,2023,$ Blue Mart Company purchased manufacturing equipment at a cost

of $$345,000.$ Blue Mart estimated that the equipment will produce $600,000$ units over its five$-$year useful life, and have a residual value of $$15,000.$ The company has a December $31$ fiscal year$-$end and has a policy of recording a half$-$year$$s depreciation in the year of acquisition.

Instructions

a$.$ Calculate depreciation under the straight$-$line method for $2023$ and $2024$

b$.$ Calculate the depreciation expense under the double diminishing$-$balance method for $2023$and $2024.$

c$.$ In this situation, what factors should the company consider in determining which depreciation method it should use?