CHAP 10] PROPERTY, PLANT, AND EQUIPMENT 241 Costs Incurred Subsequent to Acquisition 10.47 Company R incurs the following costs relating to several of its plant assets. (a) $10,000 to add a room to its plant headquarters. (b) $2,000 to air condition the vice president's office. (c) $300 for oil changes to seven of the company's vehicles. (d) $500 for miscellaneous minor repairs to the company garage. (e) $700 to add a major part to one of the production machines. This will increase the machine's life by 3 years. Prepare a journal entry for each of these expenditures. Sales of Plant Assets 10.48 Company S purchases a machine for $6,000 on July 1, 19X1. The machine is expected to have a 5-year life and a $1,000 salvage value. On December 31, 19X4, Company S disposes of the machine. Prepare the necessary journal entry for each of the following cases. (a) The disposal price is $2,500. (b) The disposal price is $2,200. (c) The disposal price is $2,900.