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INSTRUCTIONS: 1 Show computations of the total cost of the equipment. 2 Depreciation calculations for the three years 3 All Adjusting Journal Entries Mark's Repair

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INSTRUCTIONS: 1 Show computations of the total cost of the equipment. 2 Depreciation calculations for the three years 3 All Adjusting Journal Entries Mark's Repair Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2021. 2021 July 1 Purchased equipment from the Equipment Center for $5,500 cash plus sales tax of $305, and shipping costs of $250. Nov. 3 Incurred ordinary repairs on the equipment at a cost of $240. Dec. 31 Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $455. 1 2022 Dec. 31 Recorded 2022 depreciation. 2023 Jan. Paid $1,800 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. Dec. 31 Recorded 2023 depreciation

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