The inner lining of an industrial furnace is a separately depreciated component. It is replaced before the end of its useful life; the new lining costs 45,000, paid in cash, and meets the recognition criteria. The old lining had a cost of 30,000 and accumulated depreciation of 24,000; it is scrapped with no salvage value. Record the entry.
- Cost of the new lining (paid in cash)
- 45,000
- Original cost of the old lining
- 30,000
- Accumulated depreciation of the old lining
- 24,000