On July 1, 2023, Sandhill Company purchased factory equipment for $1,000,600 with an estimated $43,000 salvage value. The estimated useful life for the equipment is 12 years. During 2023, 2024, and 2025 the equipment is depreciated using the straight-line method. During 2026, $39,000 in maintenance is required on the machine to keep it running up to its standard operating specifications. Also, in 2026, $122,000 is spent to improve the equipment's efficiency and prolong its useful life. The new useful life is expected to be an additional 12 years beginning in 2026 and the revised salvage value is $24,000.
What journal entry is required to record partial year depreciation for 2023? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.)
Account Titles and Explanation
Debit
Credit