Bonita Company constructed a building at a cost of $2,398,000 and occupied it beginning in January...
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Bonita Company constructed a building at a cost of $2,398,000 and occupied it beginning in January 2001. It was estimated at that time that its life would be 40 years, with no salvage value. In January 2021, a new roof was installed at a cost of $327,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $174,400. (a) (b) What entry should be made in 2021 to record the replacement of the roof? (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (To record the disposition of the old roof.) (To record the installation of the new roof.) eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 3 used Submit Answer (c) Prepare the entry in January 2021 to record the revision in the estimated life of the building, if necessary. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (d) eTextbook and Media List of Accounts Save for Later What amount of depreciation should be charged for the year 2021? Depreciation for the year 2021 (Assume the cost of the old roof is removed) eTextbook and Media Debit List of Accounts Save for Later Credit Depreciation for the year 2021 (Assume the cost of the new roof is debited to accumulated depreciation - building) Attempts: 0 of 3 used Submit Answer Attempts: 0 of 3 used tA $ Submit Answer Bonita Company constructed a building at a cost of $2,398,000 and occupied it beginning in January 2001. It was estimated at that time that its life would be 40 years, with no salvage value. In January 2021, a new roof was installed at a cost of $327,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $174,400. (a) (b) What entry should be made in 2021 to record the replacement of the roof? (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (To record the disposition of the old roof.) (To record the installation of the new roof.) eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 3 used Submit Answer (c) Prepare the entry in January 2021 to record the revision in the estimated life of the building, if necessary. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (d) eTextbook and Media List of Accounts Save for Later What amount of depreciation should be charged for the year 2021? Depreciation for the year 2021 (Assume the cost of the old roof is removed) eTextbook and Media Debit List of Accounts Save for Later Credit Depreciation for the year 2021 (Assume the cost of the new roof is debited to accumulated depreciation - building) Attempts: 0 of 3 used Submit Answer Attempts: 0 of 3 used tA $ Submit Answer
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Annual Depreciation for year 2001 to 2020 Cost Salvage value years 2398000 0 40 years Req b Account ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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