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1.The heating system was replaced at a cost of $220,000. The cost of the old system was not known. The company accounts for improvements as reductions of accumulated depreciation.
2.A new wing was added at a cost of $810,000. The new wing substantially increases the productive capacity of the plant.3. Annual building maintenance was performed at a cost of $18,500.
4.All of the machinery on the assembly line in the plant was rearranged at a cost of $48,000. The rearrangement clearly increases the productive capacity of the plant.
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