Can anyone help this question? I have no idea about why this leasehold improvements is ‘29,000'
During December 2014, costs of $89,000 were incurred to improve leased office space with economic life of 20 years.
The related lease will terminate on December 31, 2030, and is not expected to be renewed.
The office space was renovated on December, 2010 at a cost of $60,000 and was depreciated using double declining balance method.
Prepare proper journal entries for each of the transactions.
The Answer : Debit Credit
Leasehold Improvements 29,000
Accumulated Depreciation 20,634
Loss 39,366 Accounts payable 89,000
I don't know why there is a loss and Accumulated Depreciation. Please help me!!!
BUYAYA
