1. In the company's books as of December 31, 2008, there is equipment at a reduced cost of NIS 152,500. The equipment was purchased in cash on 10/2006 and began operating on 1/07, a date when the equipment was ready for use in the manner in which the management intended the equipment to be reduced by the method of the sum of the digits of years decreasing over 8 years. The value of the gear of the equipment is NIS 30,000. During December 2008, the company decided that in light of the market situation, the value of the equipment would be only NIS 15,000 and not as previously estimated.

Required: a. Recovered the cost of the equipment purchased on 1/10/2008 (Section 1). B . Record journal orders for the fixed assets for the years 2007 and 2008. What are the depreciation expenses that will appear in the profit and loss statement in 2007 and 2008? How the fixed assets will be presented, net in the financial position reports for 2007 and 2008.