Houston's Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,030, and the book value prior to the repair was $4,780. In addition, the company spent $8,500 to replace the roof of a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the building account at $87,500 and the related accumulated depreciation account at $37,800. Required: After the work was completed, what book value should Houston's report on the balance sheet for the shredding machine and the building? A company purchased land for $92,000 cash. The real estate brokers' commission was $7,500 and $8,000 was spent for demolishing an old building on the land before construction of a new building could start. Proceeds from the salvage of the demolished building were $1,500. Under the cost principle, what would the cost of the land be recorded as?
Houston's Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,030, and the book value prior to the repair was $4,780. In addition, the company spent $8,500 to replace the roof of a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the building account at $87,500 and the related accumulated depreciation account at $37,800. Required: After the work was completed, what book value should Houston's report on the balance sheet for the shredding machine and the building? A company purchased land for $92,000 cash. The real estate brokers' commission was $7,500 and $8,000 was spent for demolishing an old building on the land before construction of a new building could start. Proceeds from the salvage of the demolished building were $1,500. Under the cost principle, what would the cost of the land be recorded as?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Houston's Shredding Service has just completed a minor repair on a shredding
machine. The repair cost was $1,030, and the book value prior to the repair
was $4,780. In addition, the company spent $8,500 to replace the roof of a building.
The new roof extended the life of the building by five years. Prior to the roof
replacement, the general ledger reflected the building account at $87,500 and the
related accumulated depreciation account at $37,800.
Required:
After the work was completed, what book value should Houston's report on the
balance sheet for the shredding machine and the building?
A company purchased land for $92,000 cash. The real estate brokers' commission was
$7,500 and $8,000 was spent for demolishing an old building on the land before
construction of a new building could start. Proceeds from the salvage of the
demolished building were $1,500. Under the cost principle, what would the cost of the
land be recorded as?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a184dcc-e11c-4912-9112-fc069fbab585%2Fa29be9a8-f806-4e89-a64f-62aabd9ba2b8%2Fxttlca_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Houston's Shredding Service has just completed a minor repair on a shredding
machine. The repair cost was $1,030, and the book value prior to the repair
was $4,780. In addition, the company spent $8,500 to replace the roof of a building.
The new roof extended the life of the building by five years. Prior to the roof
replacement, the general ledger reflected the building account at $87,500 and the
related accumulated depreciation account at $37,800.
Required:
After the work was completed, what book value should Houston's report on the
balance sheet for the shredding machine and the building?
A company purchased land for $92,000 cash. The real estate brokers' commission was
$7,500 and $8,000 was spent for demolishing an old building on the land before
construction of a new building could start. Proceeds from the salvage of the
demolished building were $1,500. Under the cost principle, what would the cost of the
land be recorded as?
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