The Dec 31, 2007 balance sheet of Ritter Company showed Equipment of $64,000 and accumulated depreciation of $18,000. On January 1, 2008 the company decided that the equipment has a remaining useful life of 6 years with a $4000 salvage value. Compute the following on Jan 1.

1. depreciable cost of the equipment (the new amount can be depreciated) and

2. revised new annual depreciation.