Bera Company pays $289,900 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment.
1. During the second year of the equipment's life, $17,750 cash is paid for a new component expected to increase the equipment's productivity by 10% a year.
2. During the third year, $4,438 cash is paid for normal repairs necessary to keep the equipment in good working order.
3. During the fourth year, $10,700 is paid for repairs expected to increase the useful life of the equipment from four to five years.