Homework Answers
Answer
-Correct answer Option #3 $ 70,000.
-All the cost incurred to make the asset start funtioning from purchase cost to installation cost, will have to be capitalized.
-routine maintenance, utlities cost, employee operating costs are not at all related with acquiring or installation of the equipment. Hence these won't be capitalized.
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A company purchased equipment on January 1, 2021, for $70,000. In addition, throughout 2021 the following...
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On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $70,000. Residual value at the end...
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A capital acquisitions manager recently purchased equipment needed to begin production of new inventory. The lis...
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On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $70,000. Residual value at the end...
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On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its...
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Exercise 9-11 Oriole Company owns equipment that cost $70,000 when purchased on January 1, 2019. It...
Exercise 9-11
Oriole Company owns equipment that cost $70,000 when purchased on
January 1, 2019. It has been depreciated using the straight-line
method based on an estimated salvage value of $10,000 and an
estimated useful life of 5 years.
Prepare Oriole Company’s journal entries to record the sale of the
equipment in these four independent situations. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually. If no entry is required, select "No Entry"
for the...
problems 1 and 2 please Problem I Shamber Inc. purchased equipment on January 1, 2018, at...
problems 1 and 2 please
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A capital acquisitions manager recently purchased equipment needed to begin production of new inventory. The listed purchase cost of the equipment from a vendor was $70,000. In addition, six other costs related to the equipment were incurred at the time of acquisition and in the first month of operations. These six related costs are displayed in the illustration Purchase Cost of Equipment and Six Related Costs Total = $110,000 Purchase Cost $70,000 1. Sales Tax $5,600 2. Shipping and Handling...
On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $70,000. Residual value at the end of an estimated 7 year service life is expected to be $42,000. The company expects the equipment to operate for 20,000 hours. Required: a. Calculate depreciation expense for 2021 and 2022 using sum-of-the-years-digits assuming the equipment was purchased on January 1, 2021. b. Calculate depreciation expense for 2021 and 2022 using sum-of-the-years'-digits assuming the equipment was purchased on March 31, 2021. Complete this question...
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $2,000,000 at 13% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: points $5.829.oe. 17% bonds $3.880.880.13% long-term note Construction expenditures incurred during 2021 were as follows: $ January 1 March 31 June 30 September 30 December 31 820,000 1,420.000...
Exercise 9-11
Oriole Company owns equipment that cost $70,000 when purchased on
January 1, 2019. It has been depreciated using the straight-line
method based on an estimated salvage value of $10,000 and an
estimated useful life of 5 years.
Prepare Oriole Company’s journal entries to record the sale of the
equipment in these four independent situations. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually. If no entry is required, select "No Entry"
for the...
problems 1 and 2 please
Problem I Shamber Inc. purchased equipment on January 1, 2018, at a total cost of $68,000. At the time of purchase, management estimated that the equipment would have a salvage value of $8,000 and an estimated useful life of 6 years. The company recorded depreciation through December 31, 2020, using the straight-line method. On January 1, 2021, the estimated salvage value was revised to $3,000 and the useful life was revised to a total of...
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