Wallace Catering Company had a deluxe, portable barbecue with a book value of $7,000 at its December

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Wallace Catering Company had a deluxe, portable barbecue with a book value of $7,000 at its December 31, 2013, year-end. The barbecue had an estimated remaining useful life of five years and a $200 residual value. On January 3, 2014, a customized electronic rotisserie unit costing $1,000 was added to the barbecue to improve the quality of the barbecuing process. The rotisserie had an estimated life of five years and no residual value. Record the addition on January 3 and the revised depreciation on the barbecue at December 31. Assume cash was paid for the rotisserie and that it represents a significant expenditure to Wallace.

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Fundamental Accounting Principles Volume II

ISBN: 978-1259066511

14th Canadian Edition

Authors: Larson Kermit, Jensen Tilly

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