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Please help me with the below question: At its December 31, 2023, year-end, ABC Inc. had a warehouse with an adjusted book value of $215,000
Please help me with the below question:
At its December 31, 2023, year-end, ABC Inc. had a warehouse with an adjusted book value of $215,000 and an estimated remaining useful life of 16 years and residual value of $75,000. Because of pick-up and delivery issues at the warehouse, a contractor was hired to construct a new door into the east wall during the week of January 5 , 2024, for $15,000 on account. The estimated useful life of the door is 10 years with an estimated residual value of $3,000. ABC Inc. uses the straight-line method to depreciate assets. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'. a) Record the installation of the new door. b) Record total depreciation on the warehouse at December 31, 2024Step by Step Solution
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