On January 1, 2020,the company purchased an equipment for $2,000,000 by paying $1,000,000 down and issuing a note for the balance. In addition, the company incurred $20,000 for shipping and installing the equipment. The management provide with other information:

Estimated useful life of the equipment at the time of purchase, 10 years.

- Estimated salvage (residual) value at the time of purchase, $320,000.

- The company uses the straight-line method of depreciation.

- The companys fiscal year coincides with the calendar year

On January 1, 2022 the equipment needed a major repair. The company paid $400,000 to repair the equipment. Based on an expert' opinion, the repair will increase the useful life of the equipment for two years, however the residual value remains the same. The journal entry prepared by to record this transaction

The carrying amount of the equipment before the repair is

The journal entries to record the depreciation expense for the 2022 is

Now assume that the company sold the equipment for $1,400,000 cash on July 1, 2023. the journal entries to record the sale of the equipment would be