XYZ Inc. purchased an asset on January 1, 2015, for $18,200. The asset was expected to have a 5-year life and a $6,100 salvage value. XYZ Inc. uses the straight-line method of depreciation.

On January 1, 2017, XYZ Inc. made a major repair to the asset of $3,510, extending its life. This did not affect the life and salvage value of the asset.

On January 1, 2019, XYZ Inc. made a major repair to the asset of $7480, extending its life but not affecting the salvage value. The useful life increased from 5 years to 7 years.

a)

Find the depreciation expense for Year 2015.

b)

What effect did the decision to capitalize the major repair expense have on the historical cost and the accumulated depreciation of this asset? Give the revised historical cost and accumulated depreciation for the asset after capitalization on January 1, Year 2017.

c)

Find the depreciation expense for Year 2017.

d)

What effect did the decision to capitalize the overhaul expense have on the historical cost and the accumulated depreciation of this asset? Give the revised historical cost and accumulated depreciation for the asset after capitalization on January 1, Year 2019.

e)

Find the depreciation expense for Year 2019.