After 25% of the useful life had expired on equipment with an original cost of $100,000 and no salvage value, a

major component of the equipment is unexpectedly replaced. The old component was expected to last as long as

the equipment itself, and the companys accounting records on the component indicate it originally cost $20,000

and had no expected salvage value. The replacement component cost $30,000 and has no usefulness beyond that

of the equipment.

Required

Prepare the entries to record the component replacement, assuming a cash purchase.