On January 1, 2018, the general ledger of Parts Unlimited includes the following account balances:

Accounts	Debit			Credit
Cash	$	182,400
Accounts Receivable		32,400
Inventory		57,800
Land		360,000
Equipment		396,500
Accumulated depreciation				$	192,000
Accounts Payable					34,800
Common stock					540,000
Retained Earnings					262,300
Totals	$	1,029,100		$	1,029,100

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

1. Purchased inventory on account, $345,800.
2. Sold inventory on account, $645,200. The inventory cost $362,600.
3. Received cash from customers on account, $578,700.
4. Paid cash on account, $348,500.
5. Paid cash for salaries, $114,700, and for utilities, $72,700.

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

April		1		Purchased equipment for $115,000 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $5,200 for freight and $5,800 for installation and testing of the equipment. The equipment has an estimated residual value of $16,000 and a ten-year service life.
June		30		Purchased a patent for $60,000 from a third-party marketing company related to the packaging of the companys products. The patent has a 20-year useful life, after which it is expected to have no value.
October		1		Sold equipment for $52,200. The equipment cost $80,700 and had accumulated depreciation of $57,400 at the beginning of the year. Additional depreciation for 2018 up to the point of the sale is $10,500.
November		15		Several older pieces of equipment were improved by replacing major components at a cost of $74,100. These improvements are expected to enhance the equipments operating capabilities. [Record this transaction using Alternative 2 capitalization of new cost.]

Year-end adjusting entries:

1. Depreciation on the equipment purchased on April 1, 2018, calculated using the straight-line method.
2. Depreciation on the remaining equipment, $41,500.
3. Amortization of the patent purchased on June 30, 2018, using the straight-line method.
4. Accrued interest payable on the note payable.
5. Equipment with an original cost of $87,400 had the following related information at the end of the year: accumulated depreciation of $56,300, expected cash flows of $29,800, and a fair value of $20,800.
6. Accrued income taxes at the end of the year are $32,600.