At the beginning of the 2025 fiscal year, an inexperienced maintenance technician at Wildhorse Company did not check the oil in one of the company cars and the engine burned up. Wildhorse replaced the engine at a cost of $9000. The material expenditure is expected to extend the useful life of the car by 3 years. The car had an original cost of $50000 and a 4-year life. The balance in Accumulated Depreciation at the time of the expenditure was $7400. The entry to record the purchase would include a O debit to Repairs and Maintenance expense of $9000. O debit to Accumulated Depreciation of $7400. O debit to Accumulated Depreciation of $9000, O debit to Equipment- Trucks of $1600.

At the beginning of the 2025 fiscal year, an inexperienced maintenance technician at Wildhorse Company did not check the oil in one of the company cars and the engine burned up. Wildhorse replaced the engine at a cost of $9000. The material expenditure is expected to extend the useful life of the car by 3 years. The car had an original cost of $50000 and a 4-year life. The balance in Accumulated Depreciation at the time of the expenditure was $7400. The entry to record the purchase would include a O debit to Repairs and Maintenance expense of $9000. O debit to Accumulated Depreciation of $7400. O debit to Accumulated Depreciation of $9000, O debit to Equipment- Trucks of $1600.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 4CE: Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the...

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