Required information [The following information applies to the questions displayed below.] On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $39,300. The drill press is expected to last 10 years and has a residual value of $6,300. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 26,500 and 87,000 units, respectively, were produced. Required: Compute depreciation expense for 2018 and 2019 and the net book values of the drill press at December 31, 2018 and 2019, assuming the straight-line method is used. Depreciation Book Values 2018 2019