a. Carlos Company purchases \($30,000\) of equipment on January 1, 2005. The equipment is expected to last five years and be worth \($5,000\) at the end of that time. Prepare the entry to record one year's depreciation expense for the equipment as of December 31, 2005.

b. Chavez Company purchases \($40,000\) of land on January 1, 2005. The land is expected to last in- definitely. What depreciation adjustment, if any, should be made with respect to the Land account as of December 31, 2005?