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Media Models Co. is building an addition to their onsite fashion show facility. The redevelopment will require the removal of several inside walls and ceilings.
Media Models Co. is building an addition to their onsite fashion show facility. The redevelopment will require the removal of several inside walls and ceilings. Generally, what do most companies do to record the costs related to an existing structure as a result of an addition? Select answer from the options below Most companies would keep the carrying amount of the old walls in the account and record the cost to tear down the walls as a charge to accumulated depreciation. Most companies would treat the new walls as a replacement of the old walls and follow the guidelines for replacement accounting. Most companies would keep the carrying amount of the old walls in the original account and include the cost to tear down the walls in the cost of the addition. Most companies would keep the carrying amount of the old walls and the cost to tear down the walls in the original account
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