Veradis ('oiiipany owns a building lhal iipjK’ar.s on il.s irrior year-end balance sbcci al ils original $572,000 cost IcHN $420,000 accninnlalcd dcprccialion. I'bc building is depreciated on a straighl-line basis assuming a 20-year life and no salvage value, During Ibe I'irsl week in .laniiary of'llie ciiiTcnl calendar year, major siruclural repairs are com|)leled on Ibe laiilditig al a $6K,350 cost, 'I'be repairs extend its usel'ul lil'e lor 5 years beyond Ibe 20 years originally eslimaled.

1. Delermine Ibe building’s age (plani asset age) as ol Ibe jaior year-end balance sheet date.

2. Prepiire (be eniry lo record Ibe cost ol' Ibe slrucliir.'d repairs dial are paid in cash.

3. Delermine (be book value of (be building innnedialely al'ler (be repairs are recorded, 4. Prepare Ibe eniry lo recoi’d (be cnrrenl calendar year's deprecialion.