On April 1, 2016, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $64,600, has an ten-year useful life, and has no residual value. The company uses the straight-line depreciation method for all manufacturing equipment. On January 4, 2018, $15,600 was spent to repair the equipment and to add a feature that increased its operating efficiency. Of the total expenditure, $3,500 represented ordinary repairs and annual maintenance and $12,100 represented the cost of the new feature. In addition to increasing operating efficiency, the total useful life of the equipment was extended to 12 years. Required:

1. Prepare journal entries for the depreciation for 2016 and 2017. 2. Prepare journal entries for the 2018 expenditure. 3. Prepare journal entries for the depreciation for 2018.