Eric Company uses straight-line depreciation for its equipment. On January 1, 2013, Eric purchased a new piece of equipment for \(\$ 168,000\) cash. The equipment's estimated useful life was eight years with \(\$ 15,000\) salvage value. In 2018 , the company decided its original useful life estimate should be increased by six years. Beginning in 2018 , depreciation was based on a 14 -year total useful life and no change was made in the salvage value estimate. On January 3, 2019, Eric added a modification to the equipment that increased its productivity at a cost of \(\$ 21,100\) cash. These modifications did not change the equipment's useful life but did increase the estimated salvage value by \(\$ 3,980\).

Required

a. Prepare journal entries to record (1) the purchase of the equipment, (2) 2013 depreciation expense, (3) 2018 depreciation expense, (4) the 2019 modification, and (5) 2019 depreciation expense.

b. Calculate the book value of the equipment at the end of 2019 (that is, after recording the depreciation expense for 2019\()\).