On March 1, 2017, Wind Corp purchases equipment for $150,000 in cash. Wind

Corp estimates the residual value of the equipment to be $5,000 and the useful life

of the equipment to be 10 years. Wind Corp also estimates that the equipment will

produce a total of 100,000 units of inventory. Assume that Wind Corp produces

20,000, 15,000, and 8,000 units during 2017, 2018, and 2019. Wind Corp uses the

units-of-production method to calculate depreciation.

On January 1, 2019, Wind Corp reassess how many total units it can produce with

the equipment. From January 1, 2019, Wind Corp estimates that the equipment will

produce 90,000 units until the end of the useful life. Wind Corp changes no other

estimates. Round your answer to the nearest dollar.

(a) How much is the net carrying value of the asset as of Dec 31, 2018?

(b) How much depreciation should Wind Corp take for the year ending December 31,

2019?