In 2018, Efraims Limited purchased a highly specialized piece of manufacturing equipment for $50,000. The estimated service life was 5 years. In 2020, the company paid $5,000 to update the control panel. The updated panel is expected to extend the service life of the equipment another 2 years. The cost was material to Efraims. The company should _____________.

a. Debit the Equipment account for $5,000. (The $5,000 should be depreciated over a 2-year period.)

b. Debit the Equipment account for $5,000. (The $5,000 should then be depreciated over the remaining 3-year life of the equipment.)

c. Debit the Accumulated Depreciation account related to the equipment for $5,000.

d. Give the Operations Manager the responsibility of selecting the accounting treatment.

e. Debit Repairs and Maintenance expense for $5,000