On January 7, 2019, Lasering Corporation replaced the roof on its factory at a cost of $217,000.
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Question:
On January 7, 2019, Lasering Corporation replaced the roof on its factory at a cost of $217,000. The building was originally placed in service on 1/1/2000 and had a total cost to acquire of $2,500,000. When placed in service, the plant was expected to be used for 40 years, and 0 salvage value was assumed. The original roof accounted for 5% of the original cost. After the replacement, the building is expected to be used until December 31, 2048.
(a) Record the roof replacement as a substitution
(b) Record the roof replacement assuming the cost of the original roof was not known
(c) Record 2019 depreciation, assuming the conditions in part (a)
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