Distinguishing repairs versus betterments disney world

Reference no: EM13571164

Distinguishing repairs versus betterments. Disney World experienced damage from a tornado at Space Mountain, one of its most popular attractions. It paid $30,200 to replace steel reinforcements to the structure damaged by the tornado, $86,100 for a new roof torn off by the tornado, $26,900 for a new air conditioning system that was housed on the roof, and $12,600 to replace carpeting damaged by water. Disney World estimates that higher quality steel used as replacements added 20% more structural support in terms of weight-bearing capacity. The new air conditioning system provides 25% more cooling power than the unit previously installed in the attraction. Compute the amount of these expenses that Disney World should treat as a repair and the amount it should treat as a betterment.*.2+$26,900*.25=$12765 and repair would equal the total costs minus the betterment costs, $143,035. I also just tried assuming just the improvement to the A/C system was considered a betterment. However, these answers are all wrong.

Reference no: EM13571164

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