Depreciation$)$ L$08-2,8-3$

Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of the

current year, an asset account for the company showed the following balances:

Manufacturing equipment

Accumulated depreciation through the end of $$144,000$

year

$72,000$

During the current year, the following expenditures were incurred for the equipment:

Major overhaul of the equipment on January $2$ the current year that improved efficiency $$17,000$

Routine repairs on the equipment

$1,400$

The equipment is being depreciated on a straight$-$line basis over an estimated life of $20$ years with a $$14,000$ estimated residual value.

The annual accounting period ends on December $31.$

Required:

Indicate the effects of the following on the accounting equation.

Note: Enter decreases to account categories as negative amounts and do not round your intermediate calculations.

The adjustment for depreciation at the end of last year.

The two expenditures during the current year for $($a$)$ the major overhaul of the equipment and $($b$)$ repairs and maintenance.