On October $1,2022.$ Wildhorse Manufacturing Company purchased a piece of high$-$tech equipment for $$90,100$ cash. Wildhorse estimated the equipment would have $6-$year useful life and a residual value of $$8,500.$ The company uses straight$-$line depreciation and has a September $30$ fiscal year end.

On October $1,2024,$ Wildhorse paid $$15,300$ cash to upgrade the equipment. It is expected that the upgrade will significantly reduce the operating costs of the equipment. Wildhorse also reviewed the equipment's expected useful life and estimated that, due to changing technology, the equipment's total expected useful life will be $5$ years and its residual value will be $$4,700.$

$($a$)$

Your answer is correct.

Calculate the annual depreciation expense for the first two years of the equipment's life.

Annual depreciation expense

$

per year

eTextbook and Media

List of Accounts

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Question Part Score

$\frac{1}{1}$

$($b$)$

Your answer is incorrect.

Calculate the carrying amount of the equipment at September $30,2024.$

Carrying amount $

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$($c$)$

Record the expenditure to upgrade the equipment on October $1,2024.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.$)$

$\backslash$table$[[$Date Account Titles,Debit$],[$Oct$.1,],[$eTextbook and Media,$]]$

List of Accounts

Attempts: $0$ of $2$ used