On October 1, 2019, Carla Vista Manufacturing Company purchased a piece of high-tech equipment for $89,900 cash. Carla Vista estimated the equipment would have a 7-year useful life and a residual value of $8,700. The company uses straight-line depreciation and has a September 30 fiscal year end. On October 1, 2021, Carla Vista paid $15,500 cash to upgrade the equipment. It is expected that the upgrade will significantly reduce the operating costs of the equipment. Carla Vista also reviewed the equipment's expected useful life and estimated that, due to changing technology, the equipment's total expected useful life will be 4 years and its residual value will be $4,900. Calculate the annual depreciation expense for the first two years of the equipment's life Annual depreciation expense $ 11600 per year Calculate the carrying amount of the equipment at September 30, 2021. Carrying amount $ Record the expenditure to upgrade the equipment on October 1, 2021. (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 for the amounts.) Date Account Titles and Explanation Debit Credit Oct. 1 Date Account Titles and Explanation Debit Credit Sept. 30 (To record depreciation expense.)