irene Company purchased equipment on January 1, 2001, for 60000. It is estimated that the equipment will have a 5000 residual value at the end of its 5-year useful life. It is also estimated that the equipment will produce100000 units over its 5-year life.

Answer the following independent question.

1. Calculate the amount of amortization expense for the year ended December 31, 2001, using the straight-line method of amortization

2. If 16000 units of product are produced in 2001 and 24000 units are produced in 2002, what is the net book value ( carrying value) of the equipment on December 31, 2002? the company uses the units-of-production depreciation method.