On April 1, 2019, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $100,000, has a ten-year useful life, and has no residual value. The company uses the straight-line depreciation method for all manufacturing equipment. Partial-year depreciation is calculated using the half-year accounting convention.

On January 4, 2021, $20,000 was spent to repair the equipment and to add a feature that increased its operating efficiency. Of the total expenditure, $5,000 represented ordinary repairs and annual maintenance and $15,000 represented the cost of the new feature. In addition to increasing operating efficiency, the total useful life of the equipment was extended to 15 years.

Required:

Prepare journal entries for the following:

1. Depreciation for 2019 and 2020.
2. The 2021 expenditure.
3. Depreciation for 2021.