At its December 31, 2013, year-end, Folkstone Apparel had a warehouse with an adjusted book value of

At its December 31, 2013, year-end, Folkstone Apparel had a warehouse with an adjusted book value of $292,500 and an estimated remaining useful life of 15 years and residual value of $90,000. Because of pick-up and delivery issues at the warehouse, a contractor was hired to construct a new door into the east wall during the week of January 5, 2014, for $25,500 on account. The estimated useful life of the door is 15 years with an estimated residual value of $7,500. Folkstone uses the straight-line method to depreciate assets. Required 1. Record the installation of the new door. 2. Record total depreciation on the warehouse at December 31, 2014.

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15