Question: At its December 31 2013 year end Folkstone Apparel had a

At its December 31, 2013, year-end, Folkstone Apparel had a warehouse with an adjusted book value of $292,500 and an estimated remaining useful life of 15 years and residual value of $90,000. Because of pick-up and delivery issues at the warehouse, a contractor was hired to construct a new door into the east wall during the week of January 5, 2014, for $25,500 on account. The estimated useful life of the door is 15 years with an estimated residual value of $7,500. Folkstone uses the straight-line method to depreciate assets.

1. Record the installation of the new door.
2. Record total depreciation on the warehouse at December 31, 2014.

View Solution:

Sale on SolutionInn
  • CreatedJanuary 08, 2015
  • Files Included
Post your question