Recording Depreciation and Repairs (Straight-Line Depreciation) Manrow Growers, Inc., owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of this year, an asset account for the company showed the following balances: During the current year, the following expenditures were incurred for the equipment: \begin{tabular}{|lr|} \hline Major overhaul of the equipment on January 1 of the current year that improved efficiency & $42,000 \\ Routine maintenance and repairs on the equipment & 5,000 \\ \hline \end{tabular} The equipment is being depreciated on a straight-line basis over an estimated life of eight years with a $20,000 estimated residual value. The annual accounting period ends on December 31 . Required: 1. Give the adjusting entry that was made at the end of last year for depreciation on the equipment. 2. Starting at the beginning of the current year, what is the remaining estimated life? 3. Give the journal entries to record the two expenditures during the current year