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DO IT 9 . 3 On August 1 , 2 0 0 9 , one day after its year end, Fine Furniture Company purchased a

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DO IT 9.3
On August 1,2009, one day after its year end, Fine Furniture Company purchased a building for $500,000. The company used straight-line depreciation to allocate the cost of this building, estimating a residual value of $50,000 and a useful life of 30 years. After 15 years of use, on August 1,2024, the company was forced to replace the entire roof at a cost of $25,000. The residual value was expected to remain at $50,000 but the total useful life was now expected to increase to 40 years. Prepare journal entries to record (a) depreciation for the year ended July 31,2024 ; (b) the cost of the addition on August 1,2024; and (c) depreciation for the year ended July 31,2025.
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