Exercise 10-14 Ordinary repairs, extraordinary repairs, and betterments LO c3 Oki Company pays $264,900 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment 1. During the second year of the equipment's life, $17,700 cash is paid for a new component expected to increase the equipment's productivity by 10% a year 2 During the third year, $4,425 cash is paid for normal repairs necessary to keep the equipment in good working order. 3. During the fourth year, $10,650 is paid for repairs expected to increase the useful life of the equipment from four to five years, 1 Record the betterment cost of $17,700 paid in cash. Record the cost of normal repairs of $4,425 paid in cash to keep the equipment in good working order 2 Record the cost of repairs of $10,650 paid in cash to increase the useful life of the equipment. 3 search