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Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding...

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Accounting

Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027.
Machine #5027
Component Date of purchase Depreciation Method* Cost Est. Residual Est.Life
Single metal housing Jan. 12/21 SL $ 36,000 $ 6,00015 yrs
Motor Jan. 12/21 DDB 28,0002,00010 yrs
Blade Jan. 12/21 SL 9,0001,0005 yrs
$ 73,000
*SL = Straight-line; DDB = Double-declining-balance
On January 7,2023, the machine blade cracked and it was replaced with a new one costing $10,800 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2023, it was determined that the useful life on the metal housing should be increased to a total of 18 years instead of 15 years and that the residual value should be increased to $8,800.
Required:
1. Prepare the entry to record the purchase of the replacement blade.
2. Calculate the total depreciation expense to be recorded on Machine #5027 for 2023.

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