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The Capitals Company has provided you the following information pertaining to the year ending December 31, 2018: January 1, 2018 December 31, 2018 Equipment $

The Capitals Company has provided you the following information pertaining to the year ending December 31, 2018:

January 1, 2018 December 31, 2018
Equipment $ 575,000 $ 729,000
Accumulated depreciation $ 165,000 $ 120,500

Equipment costing $25,000 was acquired in exchange for common stock.

Equipment with an original cost of $57,500 and a book value of $5,000 was scrapped.

Equipment was purchased in exchange for cash.

Equipment with a book value of $39,000 was sold resulting in a $14,000 gain. The accumulated depreciation at the time of the sale was $67,000.

Required:

Determine the cash paid for equipment purchases during 2018.

Determine the depreciation expense for 2018.

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