A Number of Major Structural Repairs Completed at the Beginning

question 39

Essay

A number of major structural repairs completed at the beginning of the current fiscal year at a cost of $1,000,000 are expected to extend the life of a building 10 years beyond the original estimate. The original cost of the building was $6,552,000, and it has been depreciated by the straight-line method for 25 years. Estimated residual value is negligible and has been ignored. The related accumulated depreciation account after the depreciation adjustment at the end of the preceding fiscal year is $4,550,000.
(a)What has the amount of annual depreciation been in past years?
(b)What was the original life estimate of the building?
(c)To what account should the $1,000,000 be debited?
(d)What is the book value of the building after the extraordinary repairs have been made?
(e)What is the expected remaining life of the building after the extraordinary repairs have been made?
(f)What is the amount of straight-line depreciation for the current year, assuming that the repairs were completed at the very beginning of the current year? Round to the nearest dollar.

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Definitions:

Formed elements

The solid components of blood, including red blood cells, white blood cells, and platelets, which are crucial for various bodily functions such as oxygen transport and immune response.

Erythrocytes

Red blood cells responsible for carrying oxygen throughout the body.

Collection tube

A container used in medical and research settings for the collection and storage of samples, such as blood or urine.

No additive

Products or substances without any additional ingredients or chemicals added to the original composition.