Marks repair Service uses the straight-line method of depreciation. The companys fiscal year-end is December 31, 2021. The following transaction and events occurred during the first three years.

2021	July 1	Purchased equipment from the equipment Center for $5,500 cash plus sales tax of $305, and shipping cost 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
2022	Dec. 31	Recorded 2022 depreciation
2023	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.
	Dec. 31	Recorded 2023 depreciation

Instructions:

1. Shows computations of the total cost of the equipment

2. Depreciation calculations for the three years

3. All adjusting Journal entries