Expenditures After Acquisition

Pasta, a restaurant specializing in fresh pasta, installed a pasta cooker in early $2017$ at a cost of $$12,700.$ The cooker had an expected life of $5$ years and a residual value of $$600$ when installed. As the restaurant's business increased, it became apparent that renovations would be necessary so the cooker's output could be increased. In January $2020,$ Pasta spent $$8,200$ to install new heating equipment and $$4,100$ to add pressure$-$cooking capability. After these renovations, Pasta estimated that the remaining useful life of the cooker was $10$ years and that the residual value was now $$1,500.$

Required:

Compute $1$ year's straight$-$line depreciation expense on the cooker before the renovations.

per year

Assume that three full years of straight$-$line depreciation expense had been recorded on the cooker before the renovations were made. Compute the book value of the cooker immediately after the renovations were made.

$

Comput $1$ year's straight$-$line depreciation expense on the renovated cooker.

$ per year