Jacobs Company owned a warehouse that had an expected remaining life of 30 years and a book

Question:

Jacobs Company owned a warehouse that had an expected remaining life of 30 years and a book value of $360,000 on January 1, 2008. The company added a sprinkler system to its warehouse to provide fire prevention. The sprinkler system cost $34,000 to install on January 8, 2008. The of the warehouse was $19,000. The sprinkler system did not change the or the estimated life of the warehouse.
a. Record the cost of the new sprinkler system on January 8, 2008.
b. Record the annual depreciation expense adjusting entry for the warehouse on December 31, 2008, under the straight-line method.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...