Comfort Zone Housing paid $80,000 for a new air-conditioning system in an existing building.
Required:
Identify the account that should be debited and briefly explain your reasoning, in each of the following cases:
a. The expected useful life of the air-conditioning system is the same as the remaining useful life of the building it was installed in.
b. The air-conditioning system is expected to have a useful life of 15 years, while the building it was installed in is expected to have a remaining useful life of 30 years.