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company purchased heating system january 2 1996 225000 system had estimated useful life

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
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