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On 1 July 2017, Smith Ltd purchased equipment at a cost of $22,000. The equipment has an estimated residual value of $3,000 and is being

On 1 July 2017, Smith Ltd purchased equipment at a cost of $22,000. The equipment has an estimated residual value of $3,000 and is being depreciated over an estimated useful life of 8 years under the diminishing-balance method of depreciation, at a rate of 18.75%. What should the depreciation expense be (rounded to the nearest dollar) on the equipment for the year ended 31 December 2018 and what is the carrying amount value at 31 December 2018? Smith Ltd's reporting period ends on 31 December.

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