Question 19 (3 points) Which of the following is true regarding expenditures after a plant asset has already been placed in service? 1) Costs incurred to keep an asset in normal, good operating condition are capitalized and added to the original asset cost. They are then depreciated over the asset's remaining useful life. 2) Costs incurred to keep an asset in normal, good operating condition are reported as expenses on the current period income statement. 3) Costs incurred to make a plant asset more efficient or productive are treated as expenses on the current period income statement. Extraordinary repairs are expenditures extending the asset's useful life beyond its original estimate. They are reported as expenses on the current- period income statement. Question 24 (3 points) A company purchased and began using a piece of equipment on October 9th for $60,000. At the time of purchase, the equipment was estimated to have an 8 year useful life and a salvage value of $5,000. It was expected that the equipment would be used for 33,000 hours during the time the company owned it. What is the journal entry to record depreciation on December 31 using the straight-line method? 0 1) Debit Depreciation Expense $6,875; credit Equipment $6,875. 0 2) Debit Depreciation Expense $1,145.83; credit Accumulated Depreciation- Equipment $1,145.83. 3) Debit Depreciation Expense $6,875; credit Accumulated Depreciation- Equipment $6,875. 4) Debit Depreciation Expense $1,718.75; credit Accumulated Depreciation- Equipment $1,718.75