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Keg Corp. paid $45,500 to replace part of the factory floor. The floor had been...

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Accounting

Keg Corp. paid $45,500 to replace part of the factory floor. The floor had been capitalized as part of the factory building when it was purchased ten years previously, and was not considered a separate component. When purchased, the building had been assumed to have a 30-year useful life, and was being depreciated on a straight-line basis. At the time of the floor replacement, the building had been depreciated for 10 years. Keg Corp. estimated that the original cost of the floor would have been 17% cheaper than the new replacement, due to inflation. Prepare the journal entries to record these transactions, assuming Keg Corp. follows IFRS.

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Account Titles and Explanation Debit Credit To record new factory floor.) (To record the entry for the old floor)

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