On january 1, 2012, desmet company purchased office equipment that cost $15,000 cash. the equipment was delivered under terms fob shipping point, and transportation cost was $1,000. the equipment had a five year useful life and a $1,200 expected salvage value. using straight line depreciation, determine the amount of depreciation expense and the amount of accumulated depreciation that would appear on the december 31, 2014 financial statements?

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow