The plant building of Xon Corporation is old (estimated remaining useful life is 12 years) and...
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The plant building of Xon Corporation is old (estimated remaining useful life is 12 years) and needs continuous maintenance and repairs. The company's accounts show that the building originally cost $540,000; and accumulated depreciation was $360,000 at the beginning of the current year. During the current year, the following expenditures relating to the plant building are made. 1. Continuing, frequent, and low-cost repairs 2. Added a new storage shed attached to the building estimated useful life of eight years 3. Removed roof and replaced it with a new roof* 4. Unusual and infrequent repairs due to damage from flood; repairs did not increase the use, value, or the economic life of the asset 5. Complete overhaul of the plumbing system (old costs unknown) $30,600 64,800 90,000 10,800 22,500 * Original cost of the roof was $72,000 Prepare the journal entry to record each item 1 through 5, assuming all items are paid in cash. Note: Round your answers to the nearest whole number. The plant building of Xon Corporation is old (estimated remaining useful life is 12 years) and needs continuous maintenance and repairs. The company's accounts show that the building originally cost $540,000; and accumulated depreciation was $360,000 at the beginning of the current year. During the current year, the following expenditures relating to the plant building are made. 1. Continuing, frequent, and low-cost repairs 2. Added a new storage shed attached to the building estimated useful life of eight years 3. Removed roof and replaced it with a new roof* 4. Unusual and infrequent repairs due to damage from flood; repairs did not increase the use, value, or the economic life of the asset 5. Complete overhaul of the plumbing system (old costs unknown) $30,600 64,800 90,000 10,800 22,500 * Original cost of the roof was $72,000 Prepare the journal entry to record each item 1 through 5, assuming all items are paid in cash. Note: Round your answers to the nearest whole number.
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Continuing frequent and lowcost repairs Debit Maintenance and R... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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