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.