Monty Industries purchases $$113,500$ of machinery on January $1,2021.$ The machinery is expected to have a $5$ year useful life and a residual value of $$11,300.$ On January $1,2024,$ management determines that the equipment will last for an additional $2$ years and the new residual value is $$5,900.$ Monty uses straight$-$line depreciation and has a calendar year end.

Calculate the depreciation expense related to this piece of machinery and determine the carrying value of the machinery on December $31,2024.$

Depreciation Expense $

Carrying Value

$

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