Subsequent expenditures
• LO11–9
Belltone Company made the following expenditures related to its 10-year-old manufacturing facility:
1. The heating system was replaced at a cost of $250,000. The cost of the old system was not known. The company accounts for improvements as reductions of
2. A new wing was added at a cost of $750,000. The new wing substantially increases the productive capacity of the plant.
3. Annual building maintenance was performed at a cost of $14,000.
4. All of the equipment on the assembly line in the plant was rearranged at a cost of $50,000. The rearrangement clearly increases the productive capacity of the plant.
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