2014

Jan 1- Paid 70,000 cash plus 6% sales tax for new machine, estimated to have a 5-year life and 10,000 salvage value.

Dec 31- Record annual straight-line depreciation on the machine

2015

Jan 1- Paid 30,000 cash to increase machine's capacity, which alsoincreased the machine's salvage value to 20,000 and the estimated useful life to 6 years.

June 15- Paid 500 cash to change the belts on the machine to repair it and bring it back to its normal operating state.

Dec 31- Record annual straight- line depreciation on the machine

(PREPARE JOURNAL ENTRIES TO RECORD THESE TRANSACTIONS)

SHOW WORK!!