Question 6 On October 1, 2019, Crane Manufacturing Company purchased a piece of high-tech equipment for $90,000 cash. Crane estimated the equipment would have a 7-year useful life and a residual value of $8,800. The company uses straight-line depreciation and has a September 30 fiscal year end. On October 1, 2021, Crane paid $15,500 cash to upgrade the equipment. It is expected that the upgrade will significantly reduce the operating costs of the equipment. Crane also reviewed the equipment's expected useful life and estimated that, due to changing technology, the equipment's total expected useful life will be 6 years and its residual value will be $4,900. Calculate the annual depreciation expense for the first two years of the equipment's life. Annual depreciation expenses per year Calculate the carrying amount of the equipment at September 30, 2021. Carrying amounts 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 o for the amounts.) Debit Credit Date Account Titles and Explanation Oct. 1 (To record upgrade to equipment.)