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The Gene Thompkins Company constructed a building for their manufacturing operation at a cost of...

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Accounting

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The Gene Thompkins Company constructed a building for their manufacturing operation at a cost of $3,600,000 and occupied it beginning January, 2008. The newly constructed building's life was estimated to be 32 years, with a $300,000 salvage value. Ten years later, in January 2018 , a new insulated passive solar roof was installed at a cost of $625,000; as a result of installing the new roof, the building's useful life was estimated to be 28 years from January 2018 going forward. In addition, the buildings salvage value at the end of 28 years was now estimated to be 250,000 . The cost of the old roof was $310,800. Required (a) What amount of depreciation on the building should have been charged annually from the years 2008 through 2017? (Assume straight-line depreciation.) (b) Prepare the journal entry that should be made in 2018 to record the replacement of the old roof with the new insulated passive solar roof? (c) What amount of depreciation should be charged for the year 2018

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