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The Capitals Company has provided you the following information pertaining to the year ending December 31,...

The Capitals Company has provided you the following information pertaining to the year ending December 31, 2018:

January 1, 2018 December 31, 2018
Equipment $ 575,000 $ 729,000
Accumulated depreciation $ 165,000 $ 120,500

Equipment costing $25,000 was acquired in exchange for common stock.

Equipment with an original cost of $57,500 and a book value of $5,000 was scrapped.

Equipment was purchased in exchange for cash.

Equipment with a book value of $39,000 was sold resulting in a $14,000 gain. The accumulated depreciation at the time of the sale was $67,000.

Required (Please answer the following questions):

-Determine the cash paid for equipment purchases during 2018.

-Determine the depreciation expense for 2018.

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