Trevor Company completed a program of expansion and improvement of its plant during 2011. You are provided with the following information concerning its buildings account:

(a) On October 31, 2011, a 50-foot extension to the present factory building was completed at a contract cost of $462,000.

(b) During the course of construction, the following costs were incurred for the removal of the end wall of the building where the extension was to be constructed. (1) Payroll costs during the month of March arising from employees’ time spent in removing the wall, $23,410. (2) Payments to a salvage company for removing unusual debris, $2,610.

(c) The cost of the original structure allocable to the end wall was estimated to be $33,900 with accumulated depreciation thereon of $17,300. Trevor Company received $6,570 from the construction company for windows and other assorted materials salvaged from the old wall.

(d) The old floor covering was replaced with a new type of long-lasting floor covering at a cost of $9,190. The cost of the old floor covering was $13,000 and accumulated depreciation was $6,250. The cost of the old floor covering had been included with the overall building cost even though the floor covering has a different useful life than the building.

(e) The interior of the plant was repainted in new bright colors for a contract price of $12,420.

(f) New and improved shelving was installed at a cost of $4,180. The cost of the old shelving was $2,200 and accumulated depreciation was $990. The cost of the old shelving had been included with the overall building cost even though the shelving has a different useful life than the building.

(g) Old electrical wiring was replaced at a cost of $13,440. Cost of the old wiring was determined to be $5,110 with accumulated depreciation to date of $1,900. Assume that the new wiring has a remaining useful life that is the same as the building.

(h) New electrical fixtures using fluorescent bulbs were installed. The new fixtures were purchased on the installment plan; the schedule of monthly payments showed total payments of $10,240, which included interest and carrying charges of $800. The old fixtures were carried at a cost of $3,300 with accumulated depreciation to date of $1,410. The old fixtures have no scrap value. Assume that the new fixtures have the same remaining useful life as the building.

Instructions:

Prepare journal entries for the preceding information. Briefly justify the capitalize-or-expense decision for each item.