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Oki Company pays $261,050 for equipment expected to last four years and have a $30,000 salvage...

Oki Company pays $261,050 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.

  1. Paid $22,150 cash for a new component that increased the equipment’s productivity.
  2. Paid $5,538 cash for minor repairs necessary to keep the equipment working well.
  3. Paid $15,100 cash for significant repairs to increase the useful life of the equipment from four to seven years.
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