Pinecrest Company uses straight-line depreciation in accounting for its machines. On January 2, 2013, Pinecrest purchased a new machine for \(\$ 258,000\) cash. The machine's estimated useful life was seven years with a \(\$ 20,000\) salvage value. In 2018 , the company decided its original useful life estimate should be increased by three years. Beginning in 2018, depreciation was based on a 10-year total useful life, and no change was made in the salvage value estimate. On January 3, 2019, Pinecrest added an automatic cut-off switch and a self-sharpening blade mechanism to the machine at a cost of \(\$ 9,200\) cash. These improvements did not change the machine's useful life but did increase the estimated salvage value to \(\$ 11,200\).

Required

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

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