Expenditures after Acquisition}

Pasta, a restaurant specializing in fresh pasta, installed a pasta cooker in early 2016 at a cost of \(\$ 12,400\). The cooker had an estimated life of five years and an estimated residual value of \(\$ 900\) when installed. As the restaurant's business increased, it became apparent that renovations would be necessary so that the cooker's output could be increased. In January 2019, Pasta spent \(\$ 8,200\) to install new heating equipment and \(\$ 4,100\) to add pressure-cooking capability. After these renovations, Pasta estimated that the remaining useful life of the cooker was 10 years and that the residual value was now \(\$ 1,500\).

\section*{Required:}

1. Compute one year's straight-line depreciation expense on the cooker before the renovations.

2. Assume that three full years of straight-line depreciation expense had been recorded on the cooker before the renovations were made. Compute the book value of the cooker immediately after the renovations were made.

3. Compute one year's straight-line depreciation expense on the renovated cooker.

\section*{Problem