Robertson Company is making significant improvements to some of its assets, as follows.
Required:
a. Record the appropriate journal entry for replacing the furnace.
b. When rec ording the transaction associated with the van there is a choice between two methods. Provide the journal entries for each method.

Significant Improvements

Upgrades or enhancements made to a company's assets, typically tangible fixed assets, that are expected to extend the asset's useful life, increase its value, or boost productivity.

Furnace

A device used for high-temperature heating, usually powered by fuel, electricity, or induction, and utilized in processes such as metal casting, forging, and glass manufacturing.

Van

A type of vehicle used for transporting goods or people, typically larger than a common car but smaller than a truck.