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Business, 18.06.2020 15:57 elenagarcia123

Oki Company pays $315,350 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment. During the second year of the equipment’s life, $14,500 cash is paid for a new component expected to increase the equipment’s productivity by 10% a year. During the third year, $3,625 cash is paid for normal repairs necessary to keep the equipment in good working order. During the fourth year, $7,450 is paid for repairs expected to increase the useful life of the equipment from four to five years.

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