1)Equipment was purchased on January 1, 2019 for $800,000. At the time of its purchase, the equipment was estimated to have a useful life of ten years and a salvage value of $80,000. The equipment was depreciated using the straight-line method of depreciation through 2021. At the beginning of 2022, the estimate of useful life was revised to a total life of twelve years and the expected salvage value was changed to $0. The amount to be recorded for depreciation for 2022 is?

2)Beta Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the following errors:

2020 2021

Interest Expense $40,000 understated $60,000 understated

Salary Expense 15,000 overstated 40,000 overstated

Assume that the 2021 errors were not corrected and that no errors occurred in 2019. By what amount will 2021 income before income taxes be overstated or understated?