Pasta, a restaurant specializing in fresh pasta, installed a pasta cooker in early 2017 at a cost of $12,100. The cooker had an expected life of 5 years and a residual value of $600 when installed. As the restaurant's business increased, it became apparent that renovations would be necessary so the cooker's output could be increased. In January 2020, Pasta spent $8,200 to install new heating equipment and $4,100 to add pressure-cooking capability. After these renovations, Pasta estimated that the remaining useful life of the cooker was 10 years and that the residual value was now $1,500. Required: 1. Compute 1 year's straight-line depreciation expense on the cooker before the renovations. 2,300 per year 2. Assume that three full years of straight-line depreciation expense had been recorded on the cooker before the renovations were made. Compute the book value of the cooker immediately after the renovations were made. 17,500 3. Compute 1 year's straight-line depreciation expense on the renovated cooker. per year Feedback Check My Work 1. Straight-line depreciation allocates the depreciable cost over the useful life of the asset. 2. Book value = Cost - Accumulated Depreciation. Capital expenditures increase the future economic benefits of an asset by extending the useful life, increa Check My Work 2 more Check My Work uses remaining. Previous