A Company Purchased a Cooling System on January 2 for $225,000.The

question 58

Essay

A company purchased a cooling system on January 2 for $225,000.The system had an estimated useful life of 15 years.On January 3 of the thirteenth year,the company completed a renovation of the system at a cost of $33,000 and now expects the system to be more efficient and last 8 years beyond the original estimate.The company uses the straight-line method of depreciation.
(a)Prepare the journal entry at January 3,to record the renovation of the cooling system.
(b)Prepare the journal entry at December 31,to record the revised depreciation for the thirteenth year.

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Definitions:

Palliative Relief

A form of medical care focused on reducing the severity of disease symptoms rather than providing a cure, aiming to improve the quality of life for patients.

Ataxia

A neurological sign consisting of lack of voluntary coordination of muscle movements, typically affecting gait, speech, and eye movements.

Coordination

The capacity to coordinate various body parts in a seamless and effective manner.

Cerebral Palsy

A neurological disorder caused by a non-progressive brain injury or malformation that occurs while the child’s brain is under development.