On July 2, 2019, Victoria Inc. purchased equipment for $720,000. This equipment has an estimated useful life of five years and an estimated residual value of $30,000. Depreciation is taken for the portion of the year the asset is used. Victoria has a December year end.

Assume Victoris is using the double declining balance.

1. Compute the depreciation expense for 2019 and 2020.

2) Instead, assume she used straight-line depreciation during 2019 and 2020. In 2021, the company determined that the equipment would be useful to the company for only one more year beyond 2021. Residual value is estimated at $40,000. Calculate the amount of deprecation expense for the 2021 income statement.