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1) Company purchased equipment for $60,000 on January 1, 2018

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1) Company purchased equipment for $60,000 on January 1, 2018. The estimated useful life of the equipment is 5 years, with a residual value of $5000 at the end of five years. using straight-line method, depreciation expense for 2018 would be?

2) A company had 400,000 shares of $10 per value common stock outstanding. The amount of additional paid in capital is $2 million and retained earnings is $600,000. The company issues a 2-for-1 stock split. The market price of the stock is $14. What is the balance in the common stock account after the issuance?