10. Nason Company operates a small manufacturing facility in addition to its main service-based business. Nason depreciates using straight-line basis over an estimated life of 15 years with a $10,000 estimated residual value. The annual accounting period ends on December 31. At the beginning of 2020, Nason had the following account balances: Equipment Accumulated Depreciation - Equipment (through 2019) $100,000 $ 54,000 During 2020, Nason incurred the following expenditures related to this asset: $ 1,000 Routine maintenance and repairs on the equipment Major equipment overhaul that improved efficiency $12,000 (completed 01/02/2020) a. Record the adjusting journal entry on December 31, 2019 for depreciation. b. On January 1, 2020, what is the remaining estimated life? c. Provide the journal entries to record the two expenditures during 2020. d. Record the adjusting journal entry required at the end of 2020 for depreciation, assuming no change in the original estimated life or residual value.

10. Nason Company operates a small manufacturing facility in addition to its main service-based business. Nason depreciates using straight-line basis over an estimated life of 15 years with a $10,000 estimated residual value. The annual accounting period ends on December 31 . At the beginning of 2020 , Nason had the following account balances: \begin{tabular}{lll} Equipment & $100,000 \\ Accumulated Depreciation-Equipment & (through 2019) & $54,000 \end{tabular} During 2020, Nason incurred the following expenditures related to this asset: Routine maintenance and repairs on the equipment $1,000 Major equipment overhaul that improved efficiency $12,000 (completed 01/02/2020) a. Record the adjusting journal entry on December 31, 2019 for depreciation. b. On January 1, 2020, what is the remaining estimated life? c. Provide the journal entries to record the two expenditures during 2020. d. Record the adjusting journal entry required at the end of 2020 for depreciation, assuming no change in the original estimated life or residual value. 10. Nason Company operates a small manufacturing facility in addition to its main service-based business. Nason depreciates using straight-line basis over an estimated life of 15 years with a $10,000 estimated residual value. The annual accounting period ends on December 31 . At the beginning of 2020, Nason had the following account balances: Equipment Accumulated Depreciation - Equipment (through 2019) $100,000 $54,000 During 2020, Nason incurred the following expenditures related to this asset: Routine maintenance and repairs on the equipment $1,000 Major equipment overhaul that improved efficiency $12,000 (completed 01/02/2020) a. Record the adjusting journal entry on December 31, 2019 for depreciation. b. On January 1,2020 , what is the remaining estimated life? c. Provide the journal entries to record the two expenditures during 2020. d. Record the adjusting journal entry required at the end of 2020 for depreciation, assuming no change in the original estimated life or residual value