E9-8 On October 1, 2012, Chignecto Manufacturing Company purchased a piece of high-tech equip ment for $90,000 cash. Chignecto estimated the equipment would have a six-year useful life and a residual value of $9,000. The company uses straight-line depreciation and has a September 30 fiscal year end. On October 1, 2014, Chignecto paid $15,000 cash to upgrade the equipment. It is expected that the upgrade will significantly reduce the operating costs of the equipment. Chignecto also reviewed the equipment's expected useful life and estimated that due to changing technology, the equipment's total expected useful life will be four years and its residual value will be $5,000. Instructions (a) Calculate the annual depreciation expense for the first two years of the equipment's life. (b) Calculate the carrying amount of the equipment at September 30, 2014. (c) Prepare the journal entry to record the expenditure to upgrade the equipment on October 1, 2014. (d) Record the annual depreciation of the equipment on September 30, 2015. (e) Show the balance sheet presentation of the equipment on September 30, 2015. Record asset addition and revised depreciation; show balance sheet presentation. (SO 3) AP