Western Oil Company, which prepares financial statements on a calendar-year basis, purchased new drilling equipment on July 1, 2000, using check numbers 1015 and 1016. The check totals are shown here, along with a breakdown of the charges.

Assume that the estimated life of the drilling equipment is 10 years and its salvage value is $\$ 5,000$.

1. Record the disbursements on July 1,2000 , assuming that no entry had been recorded for the drilling equipment.

2. Disregarding the information given about the two checks, assume that the drilling equipment was recorded at a total cost of $\$ 95,000$. Calculate the depreciation expense for 2000 using the straight-line method.