The Tolbert Corporation purchased equipment on 31 January, 2019, for $60,000. It is estimated that the equipment will have a $3,000 residual value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. The reporting period ends on 31 December. Ignore GST.

Required:

Answer the following independent questions.

1) Prepare the journal entry to record depreciation expense for the year ended 31 December 2019, using the straight-line method of depreciation. (1 Mark)

2) If 16,000 units of product are produced in 2019 and 24,000 units are produced in 2020, what is the carrying amount of the equipment at 31 December, 2020? The company uses the units-of-production depreciation method. (1 Mark)

(Type your response directly into the template in the text box below. )