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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
DO IT
On August one day after its year end, Fine Furniture Company purchased a building for $ The company used straightline depreciation to allocate the cost of this building, estimating a residual value of $ and a useful life of years. After years of use, on August the company was forced to replace the entire roof at a cost of $ The residual value was expected to remain at $ but the total useful life was now expected to increase to years. Prepare journal entries to record a depreciation for the year ended July ; b the cost of the addition on August ; and c depreciation for the year ended July
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