Pharoah Ltd. purchased equipment on January 1, 2015 at a cost of $196,670. The equipment has an estimated useful life of 10 years and a residual value of $9,150. Pharoah realized that there was a declining demand for the product being produced by the equipment. Given this indicator of possible impairment, management determined that the recoverable amount of the asset on December 31, 2018 was $97,250. The company uses the straight-line method of depreciation. (a) Calculate the annual depreciation and the carrying amount at December 31, 2018. Annual depreciation Carrying amount tA $ tA $