Homework Answers
| Cost of machine | 1385000 |
| Sales tax | 40000 |
| Transportation costs | 5000 |
| Setup costs | 20000 |
| Cost to be capitalized to Machine account | 1450000 |
| Note: Interest expense is not to be capitalized. It is to be expensed in the period it is incurred. | |
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Marshon Lattimore Industries purchased a machine to be used in their business operations at a cost...
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Current Attempt in Progress On August 1, 2017, Bonita Industries purchased a new machine on a deferred payment basis. A down payment of $17500 was made and 4 monthly installments of $14000 each are to be made beginning on September 1, 2017. The cash equivalent price of the machine was $67500 Bonita incurred and paid installation costs amounting to $3500. The amount to be capitalized as the cost of the machine is $67500. $73500 $77000 $71000 Concord Corporation purchased a...
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Here is the problem: Colt Company purchased a machine for use in it operations that had...
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1:00 1:00 Knowledge Check 01 Silver Company purchased a machine for use in the business. The...
1:00 1:00 Knowledge Check 01 Silver Company purchased a machine for use in the business. The purchase price was $55,000 and the related sales tax totaled $500 Sliver paid $1,000 to have the machine delivered to its factory and $2.000 to have it assembled. Over the five-year life of the machine. maintenance cost of $800 will be incurred annually What is the capitalized cost of this asset? PreN 456 10 of 10 Next> Knowledge Check 01 Manning Company purchased a...
Current Attempt in Progress On August 1, 2017, Bonita Industries purchased a new machine on a deferred payment basis. A down payment of $17500 was made and 4 monthly installments of $14000 each are to be made beginning on September 1, 2017. The cash equivalent price of the machine was $67500 Bonita incurred and paid installation costs amounting to $3500. The amount to be capitalized as the cost of the machine is $67500. $73500 $77000 $71000 Concord Corporation purchased a...
Colt Company purchased a machine for use in it operations that had an invoice price of $70,000, excluding sales tax. A 6% sales tax was levied on the sale. Terms were net 30. the company paid a total cost of $4,600 for hauling the machine from the dealer's warehouse to the company's plant Company, and this $4,600 included a fine of $600 for failure to secure the proper permits to use city streets in transporting the machine. In delivering the...
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On January 1, 2013, Marlon Humphrey Industries purchased a machine at a cost of $300,000. The machine had a useful life of 10-years, estimated salvage value of $20,000, and was depreciated using the straight-line method. On January 1, 2018, Humphrey traded-in the machine for a new machine. Humphrey was given a trade-in allowance of $165,000 on the machine they traded-in. The journal entry to record the trade-in of the machine would include
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