Fresh Corp has the following information available related to the equipment it uses in its business:

Description	Information
Purchase Date	January 1, 2020
Original capitalized cost	$800,000
Original useful life	5 years
Original residual value	$40,000

On January 1, 2022, Fresh made $100,000 worth of extraordinary repairs on this equipment. It financed these repairs by taking out a two-year, 12% note.

These repairs are expected to extend the useful life of the equipment by an additional three (3) years past its original five (5) year life (to a new total life of 8 years). There is no change expected to the assets residual value. Fresh uses the straight-line depreciation method for all its depreciable assets.

A: Record the journal entry Fresh should make on 1/1/22 for the cost of the extraordinary repair.

Date	Account Name	Debit	Credit
1/1/2022

B: How much depreciation expense should be recorded on the equipment for the year ending 12/31/22? Round to the nearest whole dollar. Answer: $_____