10.On January 1, 2022, Quick Stop, a convenience store, purchased a new soft-drink cooler. Quick Stop paid $11,855 cash for the cooler. Quick Stop also paid $710 to have the cooler shipped to its location. After the new cooler arrived, Quick Stop paid $223 to have the old cooler dismantled and removed. Quick Stop also paid $1,060 to a contractor to have new wiring and drains installed for the new cooler. Quick Stop estimated that the cooler would have a useful life of 6 years and a residual value of $600. Quick Stop uses the straight-line method of depreciation. The company recorded the cooler as equipment.

Required:

1. Prepare any necessary journal entries to record the cost of the cooler.

2. Prepare the adjusting entry to record 2022 depreciation expense on the new cooler.

3. What is the book value of the cooler at the end of 2022?

4. Conceptual Conncetion: If Quick Stop had used a useful life of 10 years and a residual value of $900, how would this affect depreciation expense for 2022 and the book value of the cooler at the end of 2022? Enter amounts as positive numbers.