3. DEF Co. uses the double-declining balance method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first four years. Prepare the necessary journal entries. (Show computations.) 2013 July 1 Purchased a machine for $4,500 cash. Nov. 3 Incurred ordinary repairs on machine of $400. Dec. 31 Recorded 2013 depreciation on the basis of a 10 years life and estimated residual value of $100. 2014 Dec. 31 Recorded 2014 depreciation. 2015 Dec 31 Recorded 2015 depreciation. 2016 Jan. 1 Paid $500 for an upgrade of the machine. This expenditure is expected to increase the operating efficiency and capacity of the machine. Dec. 31 Recorded 2016 depreciation, the company changed the depreciation method to straight-line method.