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Swade Records, Inc., produces small$-$run vinyl records for independent bands in the Boston area. Swade Records, Inc., is a calendar year$-$end company that uses the straight$-$line method of depreciation for all of its property, plant, and equipment.

$2\mathrm{.}1$: On Aug. $1,2020,$ Swade Records, Inc., receives a vinyl press from a German manufacturer that it had purchased for $$39,900.$ It has an expected useful life of $6$ years or $85,000$ records produced and an estimated salvage value of $$1,128.$ In addition to purchasing the vinyl press, Swade Records, Inc., pays an electrician $$720$ to wire an appropriate outlet to hook up the vinyl press because its wiring conforms to European Union, rather than U$.$S$.,$ standards. A technician from Swade Records, Inc., who earns $$33$ per hour, also spent $4$ hours testing and calibrating the equipment to ensure it was working correctly. Record the adjusting journal entry on Dec. $31,2020,$ for depreciation on the vinyl press.

$2\mathrm{.}2$: On Jan. $1,2023,$ Swade Records, Inc., realizes that the machine is better constructed than it originally assumed. It now estimates that the remaining useful life is six more years $($for a total of eight years, five months$)$ and that the residual value is $$1,618.$ Record the adjusting journal entry on Dec. $31,2023,$ for depreciation on the vinyl press.

$2\mathrm{.}3$: On Oct. $31,2026,$ Swade Records, Inc., decides to upgrade its vinyl press based on new technology that was introduced that year. Swade Records, Inc., sells the vinyl press for $$8,764$ cash after using it to produce vinyl records for customers over the first ten months of the year. Record the journal entry for the sale as well as any necessary adjusting journal entries for the vinyl press.

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