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Presented Below Are the Components Related to an Office Building

Question 147

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Presented below are the components related to an office building that Lorny Manufacturing Company purchased for $10,000,000 in January,2017.
Presented below are the components related to an office building that Lorny Manufacturing Company purchased for $10,000,000 in January,2017. a.Compute depreciation expense for 2017,assuming that Lorny uses component depreciation,uses the straight-line method of depreciation,and ignores scrap values. b.Assume that the building engineering was replaced after 20 years at a cost of $2,500,000.Prepare the journal entry to record the replacement of the old component with the new component. a.Compute depreciation expense for 2017,assuming that Lorny uses component depreciation,uses the straight-line method of depreciation,and ignores scrap values.
b.Assume that the building engineering was replaced after 20 years at a cost of $2,500,000.Prepare the journal entry to record the replacement of the old component with the new component.

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