A company pays $1,000 for equipment expected to last four years and have a $200 salvage value. Prepare journal entries to record the following costs related to the equipment.

a) During the second year of the equipment's life, $400 cash is paid for a new component expected to increase the equipment's productivity by 20% a year.

b) During the third year, $250 cash is paid for normal repairs necessary to keep the equipment in good working order.

c) During the fourth year, $500 is paid for repairs expected to increase the useful life of the equipment from four to five years.