Reporting and repairing damages

Assignment Help Accounting Basics

Reference no: EM1363631

Recent river flooding damaged a part of the Town of Brownville Library. The library building is over 70 years old and is located in a part of the town that is on the national historic preservation register. Some of the costs related to the damage included the following.

The building wiring had to be replaced. Since the wiring was over 20 years old, replacing the wiring allowed the town to bring the wiring up to current code and accommodate the increasing technology needs of the library.

A large section of the interior walls (dry-wall) of the library had to be replaced and painted. The same type of material was used in replacing the interior walls.

All hardwood floors were replaced with the same materials.

Over 30,000 books suffered water damage.

Required:

a. Discuss whether the fact that the library building is in the historic part of town has any role in determining how to record and report the damage and repairs to the library.

b. Discuss how to determine if the library should be considered impaired and, if it is impaired, how accounting and reporting should be handled.

c. Discuss whether you would classify the costs incurred to repair the building as enhancements or replacements.

d. What information would you want before determining how to record and report the damage to the books?

Reference no: EM1363631

Questions Cloud

Find the magnitude of the electron acceleration : Find the magnitude of the electron acceleration. Under an influence of its drive force, a snowmobile is moving at a constant velocity along a horizontal patch of snow. When the drive force is shut off, the snowmobile coasts to a halt.

Develop logic for program to read customer records : Develop the logic for a program that reads in 100 customer records and stores the first and last name and total purchases in three parallel arrays.

Determine which bond you purchase : Given the opportunity to invest in one of the three bonds given below, which would you purchase? Suppose an interest rate of 7 percent.

Fixed and variable costs and break-even point : The Clothes Factory wants to increase capacity by adding a new sewing machine. The fixed costs for machine A are $9,000, and its variable cost is $4 per unit.

Reporting and repairing damages : Discuss whether the fact that the library building is in the historic part of town has any role in determining how to record and report the damage and repairs to the library.

Cancer surveillance organizations in the united states : Which two cancer surveillance organizations in the United States are funded by the federal government?

What is the temperature of the neon : A spring (k =805N/m) is hanging from ceiling of an elevator, and a 5.0-kg object is attached to the lower end. By how much does the spring stretch (relative to its unstrained length) when the elevator is accelerating upward at a = 0.47m/s2.

Show web search economic impact studies : find the results of at least one economic impact study conducted for a sport event or facility.

Develop logic for program to allow to enter household size : Develop the logic for a program that allows a user to enter each household size and determine the mean and median household size in marengo.

User Account

All Pages