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Tomson Pederson Company constructed a building for their manufacturing operation at a cost of $3,000,000...

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Accounting

Tomson Pederson Company constructed a building for their manufacturing operation at a cost of $3,000,000 and occupied it beginning January, 2008. It was estimated at that time the buildings life would be 32 years, with no salvage value. In January 2018, a new insulated passive solar roof was installed at a cost of $620,000, and it was estimated then that the building would have a useful life of 30 years from that date with a salvage value of $300,000. The cost of the old roof was $290,000. 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 roof with the new insulated passive solar roof? ( Record on both disposal of assets & replacement of new roof)

(c) Prepare the entry in January 2018, to record the revision in the estimated life of the building, if necessary.

(d) What amount of depreciation should be charged for the year 2018?

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