The Justin Company's heating system has just completed its 12th year of a estimated 15-year life. At date of purchase, the system cost $232,000 and now has accumulated depreciation of $144,000. At the beginning of the next year, the company expects to spend approximately $60,000 for a complete renovation of the system and expects that the total life of the system will be 20 years. What account will be debited for the cost of the renovation?
(a) Renovation expense
(b) Credit to depreciation expense
(c) Accumulated depreciation
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