The Catherine Company, effective January 1, 2018, made the following accounting change: Catherine changed its deprectiation method from double-declining blance to the straight-line depreciation method on equipment purchased on January 1, 2016, at a cost of $400,000. The equipment had an estimated useful life of 5 years and a $30,000 residual value. Catherine is subject to an income tax rate of 30% and can justify the changes.

Required: Calulate the following amounts:

a. 2018 depreciation expense

b. the December 31, 2018,accumulated depreciation balance on the equipment.