Wildcat Company purchased a heating system on January 2,2003,for $625,000.The system had an estimated useful life of 15 years,with no residual value.On January 2,2015,the company paid $33,000 cash for a complete renovation of the system,and now expects the system to last 5 years beyond the original estimate.The company uses the straight-line method of depreciation.
(a)Prepare the journal entry at January 2,2015,to record the renovation of the heating system.
(b)Prepare the journal entry at December 31,2015,to record the depreciation for 2015.

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The Answer of Wildcat Company purchased a heating system on January 2,2003,for $625,000.The system had an estimated useful life of 15 years,with no residual value.On January 2,2015,the company paid $33,000 cash for a complete renovation of the system,and now expects the system to last 5 years beyond the original estimate.The company uses the straight-line method of depreciation.
(a)Prepare the journal entry at January 2,2015,to record the renovation of the heating system.
(b)Prepare the journal entry at December 31,2015,to record the depreciation for 2015.

Wildcat Company Purchased a Heating System on January 2,2003,for $625,000