(chapter Supplement) Recording and Explaining Depreciation, Improvements, and (4) dre end of the prior year ending on December 31, O'Connor Company's records reflected the following No the beginning of January of tne current year, the machine was renovated at a cost of $15.500. As a 5 proth the estimated life increased from five years to eight years, and the residual value increased from 54.500 to $6.500. The company uses straight-line depreciation. geasulired: 1. Give the journal entry to record the renovation. 2. How old was the machine at the end of the prior year? 3. Give the adjusting entry at the end of the current year to record straight-line depreciation for the year. 4. Explain the rationale for your entries in requirements 1 and 3