Question
Posting the question for the second time, because first answer was wrong Greg Maddox Company constructed a building at a cost of $ 3,982,000 and
Posting the question for the second time, because first answer was wrong
Greg Maddox Company constructed a building at a cost of $ 3,982,000 and occupied it beginning in January 1995. It was estimated at that time that its life would be 40 years, with no salvage value. In January 2015, a new roof was installed at a cost of $ 543,000 , and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $ 289,600 .
What entry should be made in 2015 to record the replacement of the roof?
What amount of depreciation should be charged for the year 2015?
Please explain the answer!
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