On October 1, 2019, Oriole Manufacturing Company purchased a piece of high-tech equipment for $90,300 cash. Oriole estimated the equipment would have a 6-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, Oriole paid $15,400 cash to upgrade the equipment. It is expected that the upgrade will significantly reduce the operating costs of the equipment. Oriole also reviewed the equipment's expected useful life and estimated that, due to changing technology, the equipments total expected useful life will be 5 years and its residual value will be $4,700.

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

Annual depreciation expense ________________ per year

b) Calculate the carrying amount of the equipment at September 30, 2021.

Carrying amount ___________________

c) 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Oct. 1
	(To record upgrade to equipment.)

d)

Record the annual depreciation of the equipment on September 30, 2022. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Sept. 30

(To record depreciation expense.)

List of Accounts:

• Accounts Payable
• Accumulated Amortization - Copyrights
• Accumulated Amortization - Licence
• Accumulated Amortization - Patents
• Accumulated Amortization - Trademark
• Accumulated Depreciation - Building
• Accumulated Depreciation - Equipment
• Accumulated Depreciation - Furniture
• Accumulated Depreciation - Land Improvements
• Accumulated Depreciation - Mine
• Accumulated Depreciation - Vehicles
• Advertising Expense
• Amortization Expense
• Building
• Cash
• Copyrights
• Cost of Goods Sold
• Depreciation Expense
• Equipment
• Furniture
• Gain on Disposal
• Goodwill
• Impairment Loss
• Indefinite Life Intangibles
• Interest Expense
• Interest Payable
• Interest Receivable
• Interest Revenue
• Inventory
• Land
• Land Improvements
• Licence
• Loss on Disposal
• Loss on Fair Value Adjustment of Land
• Maintenance Expense
• Mortgage Payable
• No Entry
• Notes Payable
• Notes Receivable
• Operating Expenses
• Other Expenses
• Patents
• Prepaid Insurance
• Property Tax Expense
• Research Expense
• Resource
• Repairs Expense
• Trademark
• Training Expense
• Vehicles