Question: Efficient Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,900, and the book value prior to the

Efficient Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,900, and the book value prior to the repair was $6,000. In addition, the company spent $12,000 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $110,000 and related Accumulated Depreciation account at $30,000.
Required
After the work was completed, what book value should Efficient have reported on the balance sheet for the shredding machine and the building?

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Shredding Machine Book value would still be 6000 the 1900 repair cost ... View full answer

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