At the beginning of 2018, an asset account for a company showed the following behaviour:

Equipment: $100 000

Accumulated depreciation through 2017: $54 000

In early Jan 2018, the following expenditures were incurred and paid:

Routine maintenance and repairs on the equipment: $ 1 000

Major overhaul of the equipment: $12 000

The equipment is being depreciated on a straight-line basis over an estimated life of 15 years, with a $ 10 000 estimated residual value. The company's fiscal year ends on Dec. 31st.

Questions:

1) Calculate the depreciation expense for the equipment for 2017 and prepare the journal entry to record the depreciation.

2) Prepare the journal entries to record the expenditures that occured during 2018 (if no entry is required for a transaction/event write No jounral entry required.

3) Calculate the depreciation expense for the manufacturing equipment for 2018, assuming no change in the estimated life or residual value of the equipment. Based on the accumulated depreciatoin at end 2018, how long has the company been using this equipment?

4) In early January 2019, based on an expert opinion, the useful life of the equipment need to be increased by two years; however, the residual value remains the same. Calculate the depreication expense for 2019.

5) The company ended up selling the equipment on April 30, 2020 for 60 000. Calculate the additional depreciation expense, the equipment carrying amount and the gain or loss on disposal.