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

Accounts Title	Debit	Credit
Cash	$ 167,400
Accounts Receivable	17,400
Inventory	42,800
Land	345,000
Equipment	360,500
Accumulated depreciation		$ 177,000
Accounts Payable		19,800
Common stock		525,000
Retained Earnings		211,300
Totals	$ 933,100	$ 933,100

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

1. Purchased inventory on account, $330,800.
2. Sold inventory on account, $585,200. The inventory cost $347,600.
3. Received cash from customers on account, $563,700.
4. Paid cash on account, $333,500.
5. Paid cash for salaries, $99,700, and for utilities, $57,700.

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

April 1	Purchased equipment for $100,000 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $3,700 for freight and $4,300 for installation and testing of the equipment. The equipment has an estimated residual value of $13,000 and a 10-year service life.
June 30	Purchased a patent for $45,000 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 $35,700. The equipment cost $65,700 and had accumulated depreciation of $42,400 at the beginning of the year. Additional depreciation for 2024 up to the point of the sale is $9,000. (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 $59,100. These improvements are expected to enhance the equipments operating capabilities. [Record this transaction using Alternative 2capitalization of new cost.]

Year-end adjusting entries:

1. Depreciation on the equipment purchased on April 1, 2024, calculated using the straight-line method.
2. Depreciation on the remaining equipment, $26,500.
3. Amortization of the patent purchased on June 30, 2021, using the straight-line method.
4. Accrued interest payable on the note payable.
5. Equipment with an original cost of $70,900 had the following related information at the end of the year: accumulated depreciation of $45,300, expected cash flows of $16,200, and a fair value of $13,300.
6. Accrued income taxes at the end of the year are $17,600.

Record the sale of equipment for $35,700. The equipment cost $65,700 and had accumulated depreciation of $42,400 at the beginning of the year.