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: Determine the cash paid for equipment purchases during 2018. Determine the depreciation expense for 2018.