Slate, Inc., purchased equipment at a cost of $84,000. The equipment has an estimated residual value of $12,000 and an estimated life of 8 years, or 10,000 hours of operation. The equipment was purchased on January 1, 2020. During the first year of operation, it was used for 1,500 hours. At the end of 8 years, Slate expects to replace this old equipment with a newer model at an estimated cost of $90,000.

a. If Slate uses the units-of-production method, how much would accumulated depreciation be in the first year?

b. If Slate uses the units-of-production method, how much would accumulated depreciation be at the end of year two?