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Houston’s Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,050, and the book value prior to the repair was $4,950. In addition, the company spent $7,000 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $88,600 and related Accumulated Depreciation account at $42,000. Required After the work was completed, what book value should Houston’s report on the balance sheet for the shredding machine and the building?

Book Value

Shredding machine:

Building:

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92273704

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