1. Slate, Inc., purchased equipment at a cost of $84,000. The equipment has an estimated residual value of $12,000 and an estimated life of 8 years, or 10,000 hours of operation. The equipment was purchased on January 1, 2020. During the first year of operation, it was used for 1,500 hours. At the end of 8 years, Slate expects to replace this old equipment with a newer model at an estimated cost of $90,000.

If Slate uses the units-of-production method, how much depreciation expense would be recorded in the first year? Enter your answer as a whole number only,Do NOT use $ or , (i.e. 5000)

2.

Slate, Inc., purchased equipment at a cost of $84,000. The equipment has an estimated residual value of $12,000 and an estimated life of 8 years, or 10,000 hours of operation. The equipment was purchased on January 1, 2020. During the first year of operation, it was used for 1,500 hours and the second year it was used for 2,000 hours. At the end of 8 years, Slate expects to replace this old equipment with a newer model at an estimated cost of $90,000.

If Slate uses the units-of-production method, how much would depreciation expense be at the end of year two? Enter your answer as a whole number only,Do NOT use $ or , (i.e. 5000)