Three years ago, you purchased woodworking equipment for your hobby activities and side-line business in cabinetry. The cost was $70,000, no salvage was expected, and the estimated capacity was 10,000 operating hours. Determine the annual depreciation and book value using the unit-of-production method if the usage has been 3,500, 3,000, and 5,000 hours per year.

Acorporation a. can use different depreciation methods for tax and financial reporting purposes b. must use the straight - line depreciation method for tax purposes and double declining depreciation method financial reporting purposes c. must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes d. can use straight- line depreciation method for tax purposes and macrs depreciation method financial reporting purposes