1.On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $39,000. The drill press is expected to last 10 years and has a residual value of $7,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 30,000 and 94,000 units, respectively, were produced. **Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the straight-line method is used.**

2.Nanki Corporation purchased equipment on January 1, 2016, for $673,000. In 2016 and 2017, Nanki depreciated the asset on a straight-line basis with an estimated useful life of eight years and a $9,000 residual value. In 2018, due to changes in technology, Nanki revised the useful life to a total of 5 years with no residual value. What depreciation would Nanki record for the year 2018 on this equipment?