ABC, Inc. acquired a machine on April 1, 2017, for $76,600. The useful life of the machine was estimated to be eight years with a salvage value of $4,600. Depreciation is recorded on December 31 of each year using the double-declining-balance method. On April 1, 2019, the company estimated the remaining life of the machine to be four years and changed the estimated salvage value from $4,600 to $2,600. On January 1, 2020, major repairs on the machine cost the company $34,000. The repairs added two years to the machines useful life and increased the salvage value to $3,000. Required:

(1)Prepare journal entries to record:

a.The purchase of the machine.

b.Depreciation for the years 2017, 2018, and 2019.

c.The expenditure for major repairs in 2020.

d.Depreciation expense for 2020.

(2)Compute the carrying amount of the machine at the end of 2020