Railway Company A has 1,000 miles of track that extend from Location A to Location B. Railway Company A adopted the composite method of depreciation for its railroad infrastructure that includes track and ties. The assets on the beginning of 2010 balance sheet (prepared at the end of 2009) currently are as follows:Ties:Original Cost—$13,000,000Residual Value—$500,000Depreciable Cost—$12,500,000Estimated Life—20Average Cost/Unit—1,000,000 ties at $13.00Rails:Original Cost—$20,000,000Residual Value—$1,000,000Depreciable Cost—$19,000,000Estimated Life—40Average Cost/Unit—800,000 rails at $25.00The average cost per unit represents costs of the assets over their life. Railway Company A expects to replace 1/20 of the ties at a current cost per unit of $20.00 and 1/40 of the rails at a current cost of $50 during 2011.Task:Perform the following calculations using the provided template (see the “Group and Composite Depreciation Template” attachment below):A. Calculate the depreciation expense for the year using the composite method for 2010 and 2011.B. Management is considering depreciating the ties using the group method for 2011. Calculate the depreciation expense for the year on the ties using the group method and compute the group depreciation rate for 2011.