Cullumber Company purchased equipment on January $1,2025$ for $$81,000.$ It is estimated that the equipment will have a $$4,500$ salvage value at the end of its $5-$year useful life. It is also estimated that the equipment will produce $90,000$ units over its $5-$year life. Answer the following independent questions.

$($a$)$

Your answer is correct.

Compute the amount of depreciation expense for the year ended December $31,2025$ using the straight$-$line method of depreciation.

Straight$-$line method

$ $15300$ per vear

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$($b$)$

If $13,000$ units of product are produced in $2025$ and $21,000$ units are produced in $2026,$ what is the book value of the equipment at December $31,2026?$ The company uses the units$-$of$-$activity depreciation method.

Book value at December $31,2026$