ch8.5

please help me understand

Exercise 8-14 (Algo) Ordinary repairs, extraordinary repairs, and betterments LO C3 Oki Company pays $254,900 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entri record the following costs related to the equipment. 1. Paid $22,050 cash for a new component that increased the equipment's productivity. 2. Paid $5,513 cash for minor repairs necessary to keep the equipment working well. 3. Paid $15,000 cash for significant repairs to increase the useful life of the equipment from four to seven years. A Record the betterment cost of $22,050 paid in cash. B Record the cost of minor repairs of $5,513 paid in cash to keep the equipment working well. C Record the cost of significant repairs of $15,000 paid in cash to increase the useful life of the equipment. Note : = journal entry has been entered