Question 5 (22 marks) On 1 May 2017, Wisdom Manufacturing Company purchased equipment to be used in its operations. The equipment cost $120,000, has a 6 year life and no residual value. The company uses the straight-line depreciation method for all its equipment. On 4 January 2019, $30,000 was spent to repair the equipment. Of this total expenditure, $8,000 represented ordinary repairs and annual maintenance and $22,000 represented the cost of a new component that would increase the operating efficiency of the equipment and also extend the total useful life of the equipment to 8 years. The new residual value was estimated to be $1,000. Required: Prepare journal entries for the following: (a) Depreciation expenses for 2017 and 2018. (b) The expenditure on 4 January 2019. (c) Depreciation expense for 2019. (8 marks) (6 marks) (8 marks)