Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Single metal housing Motor Date of purchase Jan. 12/18 Jan. 12/18 Depreciation Method* SL DDB Est. Cost Residual Est.Life Blade Jan. 12/18 SL $ 54,000 27,000 8,000 2,000 1,000 $9,000 15 yrs 10 yrs 5 yrs $ 89,000 *SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $10,600 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 17 years instead of 15 years and that the residual value should be increased to $10,500. Required: 1. Prepare the entry to record the purchase of the replacement blade.