17

On its December 31 prior year balance sheet, Calgary Industries reports equipment of $370,000 and accumulated depreciation of $74,000. During the current year, the company plans to purchase additional equipment costing $80,000 and expects depreciation expense of $30,000. Additionally, it plans to dispose of equipment that originally cost $42,000 and had accumulated depreciation of $5,600. The balances for equipment and accumulated depreciation, respectively, on its December 31 current year budgeted balance sheet are