On January $1,2024,$ the general ledger of Parts Unlimited includes the following account balances:

Accounts Title Debit Credit

Cash $ $170,400$

Accounts Receivable $20,400$

Inventory $45,800$

Land $348,000$

Equipment $365,500$

Accumulated depreciation $ $180,000$

Accounts Payable $22,800$

Common stock $528,000$

Retained Earnings $219,300$

Totals $ $950,100$ $ $950,100$

From January $1$ to December $31,$ the following summary transactions occurred:

Purchased inventory on account, $$333,800.$

Sold inventory on account, $$597,200.$ The inventory cost $$350,600.$

Received cash from customers on account, $$566,700.$

Paid cash on account, $$336,500.$

Paid cash for salaries, $$102,700,$ and for utilities, $$60,700.$

In addition, Parts Unlimited had the following transactions during the year:

April $1$ Purchased equipment for $$103,000$ using a note payable, due in $12$ months plus $6\%$ interest. The company also paid cash of $$4,000$ for freight and $$4,600$ for installation and testing of the equipment. The equipment has an estimated residual value of $$16,600$ and a $10-$year service life.

June $30$ Purchased a patent for $$48,000$ from a third$-$party marketing company related to the packaging of the company$$s products. The patent has a $20-$year useful life, after which it is expected to have no value.

October $1$ Sold equipment for $$39,000.$ The equipment cost $$68,700$ and had accumulated depreciation of $$45,400$ at the beginning of the year. Additional depreciation for $2024$ up to the point of the sale is $$9,300.($Hint: Total accumulated depreciation equals the amount at the beginning of the year plus the amount recorded for the current year.$)$

November $15$ Several older pieces of equipment were improved by replacing major components at a cost of $$62,100.$ These improvements are expected to enhance the equipment$$s operating capabilities. $[$Record this transaction using Alternative $2$capitalization of new cost.$]$

Year$-$end adjusting entries:

Depreciation on the equipment purchased on April $1,2024,$ calculated using the straight$-$line method.

Depreciation on the remaining equipment, $$29,500.$

Amortization of the patent purchased on June $30,2021,$ using the straight$-$line method.

Accrued interest payable on the note payable.

Equipment with an original cost of $$74,200$ had the following related information at the end of the year: accumulated depreciation of $$48,300,$ expected cash flows of $$16,500,$ and a fair value of $$14,800.$

Accrued income taxes at the end of the year are $$20,600.$