P9-9A. Revision of Depreciation and Capital Expenditure Porter Company uses straight-line deprecia tion for its equipment. On January 1, 2010, Porter purchased a new piece of equipment for $168,000 cash. The equipment's estimated useful life was ten years with $15,000 salvage value. In 2015, the company decided its original useful life estimate should be increased by five years. Beginning in 2015, depreciation was based on a 15-year total useful life and no change was made in the salvage value estimate. On January 3, 2016, Porter added a modification to the equipment that increased its productivity at a cost of $21,100 cash. These modifications did not change the equipment's useful life but did increase the estimated salvage value by $4,000 3 Requiread a. Prepare journal entries to record (1) the purchase of the equipment, (2) 2010 depreciation ex- pense, (3) 2015 depreciation expense, (4) the 2016 modification, and (5) 2016 depreciation expense b. Calculate the book value of the equipment at the end of 2016 (that is, after recording the depre ciation expense for 2016) P9-9A. Revision of Depreciation and Capital Expenditure Porter Company uses straight-line deprecia tion for its equipment. On January 1, 2010, Porter purchased a new piece of equipment for $168,000 cash. The equipment's estimated useful life was ten years with $15,000 salvage value. In 2015, the company decided its original useful life estimate should be increased by five years. Beginning in 2015, depreciation was based on a 15-year total useful life and no change was made in the salvage value estimate. On January 3, 2016, Porter added a modification to the equipment that increased its productivity at a cost of $21,100 cash. These modifications did not change the equipment's useful life but did increase the estimated salvage value by $4,000 3 Requiread a. Prepare journal entries to record (1) the purchase of the equipment, (2) 2010 depreciation ex- pense, (3) 2015 depreciation expense, (4) the 2016 modification, and (5) 2016 depreciation expense b. Calculate the book value of the equipment at the end of 2016 (that is, after recording the depre ciation expense for 2016)