Question 3 On 1 January 2016, T&T Ltd. purchased equipment for $630,000 cash. The equipment was depreciated using straight-line and had an estimated useful life of 8 years and an estimated residual value of $30,000. Effective from 1 January 2018, T&T revised the total useful life of the equipment to 7 years with an estimated residual value of $10,000. Required: a. Determine the carrying amount of the equipment at 1 January 2018. b. Compute depreciation expense for year-ended 31 December 2018.