Equipment was purchased one year ago at the cost of $456,300. The equipment had a 10-year expected useful life and a residual value of $134,500. The equipment is being depreciated using the straight-line method. After the first year, due to rapid technological change, the useful life of the equipment has dropped to 6-years and its estimated residual value has fallen to $65,700.

1. Depreciation expense for the current year

2. Impairment loss recorded at the end of year one