On May 1, 2014, the Sanderson Electrical Company purchased equipment to be used in its manufacturing process. The equipment cost $60,000, has a six-year useful life and no residual value. The company uses the straight-line depreciation method for all manufacturing equipment.

On January 4, 2016, $15,000 was spent to repair the equipment and to add a feature that increased its operating efficiency. Of the total expenditure, $4,000 represented ordinary repairs and annual maintenance and $11,000 represented the cost of the new feature. In addition to increasing operating efficiency, the total useful life of the equipment was extended to eight years.

Required:

Prepare journal entries for the following:

1. Depreciation for 2014 and 2015.

2. The 2016 expenditure.

3. Depreciation for 2016.