On January 2, 20x1, equipment was acquired at a cost of $189,000. was assigned a useful life of 6 years, a residual value of $21,000 and was determined to be depreciated using the straight-line method. depreciated using the straight-line method. On January 2, 20x4, the equipment underwent equipment underwent an extraordinary repair at a cost of $17,500. This The investment in the equipment extended its useful life by two years in addition to the original estimate and its estimated residual value was original estimate and its estimated residual value was changed to $25,000. Instructions: 1. Prepare the entry capitalizing the investment made on January 2, 20x4. 2. Prepare the December 31, 20x4 depreciation expense entry. - Include organized evidence of computations performed.