On April 1, 2016, the KB Toy Company purchased equipment to be
used in its manufacturing process. The equipment cost $57,200, has
an ten-year useful life, and has no residual value. The company
uses the straight-line depreciation method for all manufacturing
equipment.
On January 4, 2018, $14,750 was spent to repair the equipment and
to add a feature that increased its operating efficiency. Of the
total expenditure, $2,900 represented ordinary repairs and annual
maintenance and $11,850 represented the cost of...