1. On January 2, 2005, Shandley Corporation acquired equipment for $300,000. The estimated life of the equipment is 5 years or 30,000 hours. The estimated residual value is $50,000. What is the net book value of the equipment on December 31, 2006 (2 years after acquiring the equipment), if Shandley Corporation uses the straight-line balance method of depreciation? 2. Refer to the information in problem 1 above (Shandley Corp). Assume that Shandley used the machine for 1,000 hours during 2005 and 5,000 hours during 2006. If units-of-production was used, then what would the net book value be at the end of 2006