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1.On April 1, 2011, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $48,000, has an eight year useful life, and has no residual value. The company uses the straight line depreciation method for all manufacturing equipment.On January 4, 2013, $12,350 was spent to repair the equipment and to add a feature that increased its operating efficiency. Of the total expenditure, $2,000 represented ordinary repairs and annual maintenance and $10,350 represented the cost of the new feature. In addition to increasing operating efficiency, the total useful life of the equipment was extended to 10 years.Required:Prepare journal entries for the following:1. Depreciation for 2011 and 2012.2. The 2013 expenditure.3. Depreciation for 2013.
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