Greg Maddox Company constructed a building at a cost of $ 2,200,000 and occupied
ID: 2497471 • Letter: G
Question
Greg Maddox Company constructed a building at a cost of $ 2,200,000 and occupied it beginning in January 1995. It was estimated at that time that its life would be 40 years, with no salvage value. In January 2015, a new roof was installed at a cost of $ 300,000 , and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $ 160,000 .
Prepare the entry in January 2015 to record the revision in the estimated life of the building, if necessary. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Account Titles and Explanation
Debit
Credit
Explanation / Answer
No entry is requred for revision of life of the assets. However from the revision, depreciation to be charged to the asset every year will be incresed to $56,000 from $55,000.
Journal entry for charging depreciation
Account title Debit Credit Depreciation expenes $56,000.00 Accumulated depreciation $56,000.00Related Questions
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