On January 1, 2020, LMB, Inc. purchased some equipment for $42,000. In order to prepare the equipment for use, LMB had to pay $8,000 to have the equipment installed. LMB aos estimates that the equipment will be used for 5 years and that it can be sold to a smaller company for parts after 5 years. It expects to sell the parts for $5,000. LMB will use the equipment for 5 years but also estimates that it will produce 10,000 units in total during that time.

1. What is the total cost of the equipment that LMB should capitalize? (the cost that should also be used for all depreciation calculations) - answer in this format: $450,000

2. Using Straight-Line depreciation, calculate depreciation expense for the year ended December 31, 2020 (first blank) and for the year ended December 31, 2021 (second blank).

In the third blank, fill in the total accumulated depreciation after the 2nd year (12/31/2020).

In the fourth blank, fill in the net book value of the equipment on 12/31/2021.

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