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The following information applies to the questions displayed below.) A receitannual report for Commonwealth Delivery included the following note: NOTE : DESCRIPTION OF BUSINESS AND

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The following information applies to the questions displayed below.) A receitannual report for Commonwealth Delivery included the following note: NOTE : DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTY AND EQUIPMENT Expenditures for major additions, improvements and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred. Ass that Commonwealth Delivery made extensive repairs on an existing building and added a new wing. The building is a garage and repult facility for delivery trucks that serve the Denver area. The existing building originally cost 5560,000, and by the end of last year, it was half depreciated based on use of the straight line method, a 11 year estimated useful life and no residual value. During the current year, the following expenditures related to the building were made: a. Ordinary repales and maintenance expenditures for the year. $9,000 cash. Extensive and major repairs to the roof of the building, $11,000 cash. Those repairs were completed at the end of the current year c. The new wing was completed on December 31 of the current year at a cash cost of $230,000 Required: 1. Applying the polides of Commonwealth Delivery complete the following, indicating the effects for the preceding expenditures: Indicate the effects positive value for increase, negative value for decrease Building Accumulated Depreciation Depreciation Experte Repairs Expense Cash 1 b. Extensive and major repairs to the roof of the building. $141.000 cash. These repairs were completed at the end current year. c. The new wing was completed on December 31 of the current year at a cash cost of $230,000 Part 1 of 2 111 point Required: 1. Applying the policies of Commonwealth Delivery, complete the following, indicating the effects for the preceding expe Indicate the effects positive value for increase, negative value for decrease Depreciation Expense Repairs Expense Building Accumulated Depreciation $ 560,000 $ 280,000 Cash PUSON Reference 560,000 Balance January 1 Depreciation Balance prior to expenditures Expenditure a Expenditure Expenditure Balance Docomber 31

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