On January 2, Year 1, Ross Company purchased equipment costing $64,800. The equipment has an estimated salvage value of $7,920 and an estimated useful life of 10 years.

Ross Company uses straight-line depreciation. On January 5 of Year 5, new information suggests that the equipment will have a total useful life of 8 years and a revised salvage value of $5,400.

Required:

1. Compute depreciation expense for Year 5.

2. Compute the book value of the equipment at the end of Year 5.

1. Depreciation expense for Year 5:	$
2. Book value at the end of Year 5:	$