Question $33(4$ points$)$

Davis Company has been depreciating all equipment straight line over $5$ years with a $10\%$ salvage value. Starting with calendar year $2021,$ it has been proposed to change the useful life of equipment to $8$ years as part of a new maintenance program to make the equipment last longer. Salvage values would be reduced to $5\%.$ The change would be applied to equipment in current use as a change in estimate.

Equipment was purchased on $7/1/2017$ at a cost of $$55,000.$ New annual depreciation in blank $1$

A second equipment purchase was made in $10/01/2018$ for $$400,000.$ New annual depreciation in blank $2$

Question $33$ options:

Blank # $1$

Blank # $2$