On January 2, Year 1, Long Company purchased equipment costing $75,600. The equipment has an estimated salvage value of $11,160 and an estimated useful life of 10 years.

Long Company uses straight-line depreciation. On January 5 of Year 6, new information suggests that the equipment will have a total useful life of 7 years and a revised salvage value of $10,440.

Required:

1. Compute depreciation expense for Year 6.

2. Compute the book value of the equipment at the end of Year 6.

1. Depreciation expense for Year 6:	$
2. Book value at the end of Year 6:	$