The Blue Hat Co. purchased new equipment at a total cost of $152,800. The equipment will be used in their new factory for an estimated 12 years. It is estimated that the equipment will only be worth $12,500 in 12 years. Due to a delay in receiving the equipment it will only be able to be used in the last 4 years of the companys financial statement period.

Required:

1. Calculate the depreciation expense for the Blue Hat Co. in the first year that the equipment was used?
2. Calculate the depreciation expense for the Blue Hat Co. for the second year that the equipment was used?