Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $495,000 in January 2019. The companys estimated useful life of this heavy equipment is 20 years, and the estimated salvage value is $92,000. Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2019, the first year of the equipments life, and calculate the equipments net book value at December 31, 2021, after the third year of the equipments life.

b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense to be recognized for 2021, the third year of the equipments life.