Banning Corp. purchased a projector on 1/1/20 for $70,000. The equipment can be used for 8 years, and then has an expected salvage value of $2,500. Banning estimates that the equipment will be used for 225,000 hours over its estimated useful life. The actual number of hours used were 30,000 in 2020 and 28,000 in 2021.

a) What will Banning report as depreciation expense in 2020 and 2021 if the straight-line method is used? b) What will the book value of the projector be at 12/31/21?