On January 2, Year 1, Perez Company purchased equipment costing $46,800. The equipment has an estimated salvage value of $6,120 and an estimated useful life of 20 years. Perez Company uses straight-line depreciation. On January 5 of Year 8, new information suggests that the equipment will have a total useful life of 13 years and a revised salvage value of $4,680. Required: 1. Compute depreciation expense for Year 8. 2. Compute the book value of the equipment at the end of Year 8. 1. Depreciation expense for Year 8: 2. Book value at the end of Year 8: x G