On January 2, 2015, Apollo purchased equipment costing $40,000, with an estimated life of 5 years, and a salvage value of $4,000. Compute the depreciation expense Apollo would recognize on this equipment for the first two years using the Double Declining Balance Method (200% declining balance method). Dietz owned a delivery van with a book value of $2,000. It traded this old van in on a new one which cost $16,000. The dealer allowed Dietz a trade-in allowance of $3, 500 on the old van, and Dietz paid the remainder in cash. The amount of cash Dietz must pay to purchase the new van $ The gain on disposal of the old van to be reported in Dietz's income statement $