A Company Purchased a Heating System on January 2,2000,for $225,000

question 176

Essay

A company purchased a heating system on January 2,2000,for $225,000.The system had an estimated useful life of 15 years.On January 3,2013,the company completed a renovation of the system that cost of $33,000 and now expects the system to be more efficient to last eight years beyond the original estimate.The company uses the straight-line method of depreciation.
a.Prepare the journal entry at January 3,2013,to record the renovation of the heating system.
b.Prepare the journal entry at December 31,2013,to record the depreciation for 2013.

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Definitions:

Genetic Differences

Variations in genes among individuals or populations, which contribute to the biological diversity of organisms, including humans.

Collectivism and Individualism

Cultural paradigms that emphasize the importance of community and group cohesion versus personal freedom and individual rights, respectively.

Cross-Cultural Study

Research that compares cultural contexts to understand the universal and unique aspects of human behavior across societies.

Cross-Cultural Differences

Variations in norms, values, practices, and behaviors observed between different cultural or ethnic groups, emphasizing the diversity of human societies.