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Need help with the amounts for the 3rd requirement On April 1, 2022, the KB Toy Company purchased equipment to be used in its manufacturing
Need help with the amounts for the 3rd requirement
On April 1, 2022, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $61,200, has an nine-year useful life, and has no residual value. The company uses the straight-line depreciation method for all manufacturing equipment. On January 4,2024, $15,150 was spent to repair the equipment and to add a feature that increased its operating efficiency. Of the total expenditure, $3,400 represented ordinary repairs and annual maintenance and $11,750 represented the cost of the new feature. In addition to increasing operating efficiency, the total useful life of the equipment was extended to 11 years. Required: 1. Prepare journal entries for the depreciation for 2022 and 2023. 2. Prepare journal entry for the 2024 expenditure. [Any capitalized amounts are recorded using Alternative 2-capitalization of new cost). 3. Prepare journal entry for the depreciation for 2024 . Complete this question by entering your answers in the tabs below. Prepare journal entry for the depreciation for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field Step by Step Solution
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