The Capitals Company has provided you the following information pertaining to the year ending December 31, 2018: Equipment Accumulated depreciation January 1, 2018 $575,000 $165,000 December 31, 2018 $729,000 $120,500 Equipment costing $25,000 was acquired in exchange for common stock. Equipment was purchased in exchange for cash. depreciation at the time of the sale was $67,000. . Equipment with an original cost of $57,500 and a book value of $5,000 was scrapped. . Equipment with a book value of $39,000 was sold resulting in a $14,000 gain. The accumulated Required: 1. Determine the cash paid for equipment purchases during 2018. 2. Determine the depreciation expense for 2018