The ceiling is out... but there was even more wallpaper above the drop ceiling. We have to install a new drop ceiling because of the HVAC and plumbing above. You can see the new track along the wall being installed.
You can see the lower half of the wall that was damaged pretty badly. We decided to put wainscotting up to hide the imperfections. The picture below is where the toilet and pedastal sink will be installed.
I hope to have another update once the floor, walls and ceiling are finished. Who knows what color I'll choose!