Exon Company purchased equipment for $120,000 on January 1, 2018. The equipment has an estimated residual value of $10,000 and an estimated useful life of 10 years. The company depreciates the equipment using the sum-of-the-years' digits method. On January 1, 2021, the company determines that the total useful life is 8 years and the estimated residual value is $3,000. Required:
1. The equipment's book value at January 1, 2021 is $ ___ . Round your final answer to the nearest dollar.
2. The annual depreciation expense for 2021 is $____ Round your final answer to the nearest dollar.
