Brainium Technologies showed the following information in its Property, Plant, and Equipment subledger regarding a warehouse. During

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Brainium Technologies showed the following information in its Property, Plant, and Equipment subledger regarding a warehouse.

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During 2020, it was determined that the original useful life on the warehouse doors should be reduced to a total of 12 years and that the residual value should be $23,100. On January 3, 2020, the furnace broke down unexpectedly. It was replaced the next day with a new one costing $39,000, purchased on account (the old furnace was scrapped). The new furnace had an estimated residual value of $7,500 and an estimated life of 16 years and would continue to be depreciated using the double declining-balance method.

Required

1. Prepare the entry to record the purchase of the new furnace.

2. Calculate the total depreciation expense to be recorded on the warehouse for 2020.

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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