Brainium Technologies showed the following information in its Property, Plant and Equipment Sub-ledger regarding a warehouse.

During 2014, it was determined that the original useful life on the warehouse doors should be reduced to a total of 12 years and that the residual value should be $23,100. On January 3, 2014, the furnace broke down unexpectedly. It was replaced the next day with a new one costing $39,000, purchased on account (the old furnace was scrapped). The new furnace had an estimated residual value of $7,500 and an estimated life of 16 years and would continue to be depreciated using the double-declining-balance method.

Required
1. Prepare the entry to record the purchase of the new furnace.
2. Calculate the total depreciation expense to be recorded on the warehouse for2014.

Transcribed Image Text:

Warehouse: Date of Purchase Jan. 8/09 Jan. 8/09 Jan. 8/09 Jan. 8/09 Jan. 8/09 Jan. 8/09 Jan. 8/09 Depreciation Method SL SL SL SL SL DDB DDB Est. Residual Component Windows Doors Roofing Siding Framing/walls Furnace Misc. Cost S 51,750 105,000 43,500 54,000 222,000 27,000 61,500 564,750 Est. Life 15 yrs 20 yrs 10 yrs 25 yrs 30 yrs 10 yrs 5 yrs о- 0- 60,000 0- 7,500