Morris Inc. purchased an asset on January 1, Year XXX1. You can find the following data with respect to this asset from its accounting records. The company uses straight line depreciation method. January 1, Year Xxx1 Purchased equipment for Estimated life of the asset Estimated salvage value $17,700 5 $6,100 Years January 1, Year XXX3 Made a major repair that improved the quality of the output but did not affect the life and salvage value of the asset. Morris decided to capitalize the cost of repair. Major repair made on January 1, Year XXX3 costed $3,510 to Morris Inc. January 1, Year Xxx5 Had the equipment completely overhauled that is expected to extend the life of the asset but the salvage value is unaffected. Cost of the overhaul $7,490 As a result of the overhaul, the useful life of the asset increased from 5 years to Years 7 Required: a) b) Find the depreciation expense for Year XXX1. What effect did the decision to capitalize the major repair expense have on the historical cost and the accumulated depreciation of this asset? Give the revised historical cost and accumulated depreciation for the asset after capitalization on January 1, Year XXX3. Find the depreciation expense for Year XXX3. What effect did the decision to capitalize the overhaul expense have on the historical cost and the accumulated depreciation of this asset? Give the revised historical cost and accumulated depreciation for the asset after capitalization on January 1, Year XXX5. Find the depreciation expense for Year XXX5. d) e)