Pete?s Propellers Company showed the following information in its Property, Plant, and Equipment subledger regarding Machine #5027.

On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $10,400 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 2020, it was determined that the useful life on the metal housing should be increased to a total of 20 years instead of 15 years and that the residual value should be increased to $8,600.

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 2020.

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Machine #5027 Date of Depreciation Method Est. Residual Component Single metal housing Motor Blade Est. Life Purchase Jan. 12/18 Jan. 12/18 Jan. 12/18 Cost 15 yrs 10 yrs Б угs $44,000 26,000 7,720 $8,000 2,000 1,000 SL DDB SL $77,720 "SL = Stralght-line; DDB = Double-declining-balance