Marks 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.

2013		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 computer of $240.
		Dec.	31		Recorded 2013 depreciation on the basis of a four-year life and estimated salvage value of $455.
2014		Dec.	31		Recorded 2014 depreciation.
2015		Jan.	1		Paid $1,800 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment.

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