A company purchased a heating system on January 2, 1996, for $225,000. The system had an estimated useful life of…
A company purchased a heating system on January 2, 1996, for $225,000. The system had an estimated useful life of 15 years. On January 3, 2010, the company completed a renovation of the system that cost of $33,000 and now expects the system to be more efficient to last 8 years beyond the original estimate. The company uses the straight-line method of depreciation