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Exercise 8 - 1 6 A ( Algo ) Distinguishing between revenue expenditures and capital expenditures LO 8 - 8 Bill s Wrecker Service has

Exercise 8-16A (Algo) Distinguishing between revenue expenditures and capital expenditures LO 8-8
Bills Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $890, and the book value prior to the repair was $5,010. In addition, the company spent $8,000 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $86,000 and related Accumulated Depreciation account at $36,200.
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After the work was completed, what book value should appear on the balance sheet for the tow truck and the building?

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