1. Assuming opening equipment of $100,000 (to be depreciated at $2000/month) plus additional equipment purchase of $50,000 (to be depreciated at $1000/month) in month 6, calculate year-end book value of equipment. Record equipment at cost, accumulated depreciation, and book-value.

2. Calculate B.V. of ending equipment assuming you started the year with $75,000 in equipment, purchased $65,000 in new equipment during the year, and deducted $15,000 in depreciation.