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On June 30, 2024, Rosetta Granite purchased equipment for $122,000. The estimated useful life of the equipment is eight years and no residual value is anticipated. An important component of the equipment is a specialized high-speed drill that will need to be replaced in four years. The $18,000 cost of the drill is included in the $122,000 cost of the equipment. Rosetta uses the straight-line depreciation method for all equipment.

2. Calculate depreciation for the years ended December 31, 2024 and 2025, applying IFRS.