Equipment should be recorded at cost incurred
Total cost incurred = purchase price + shipping cost
= 23000 + 1300
= $24,300
Hence, Option A is correct
A company purchased a piece of equipment by paying $23.000 cash A shipping cost of $1300...
A company purchased a piece of equipment by paying $15,000 cash. A shipping cost of $900 to get the equipment to its factory was also incurred. The fair value of the equipment was $9,000 at the time of the purchase. For what amount should the company record the equipment? $15,000. $15,900. $9,000. $9,900
A company purchased new equipment for $68,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,400; sales tax paid $4,600; and installation cost, $3,300. The cost recorded for the equipment was: Multiple Choice $68,000 $69,400. $74,000. $77,300. A company purchased land for $82,000 cash. Commissions of $8,000, property taxes of $8,500, and title insurance of $2,200 were also incurred. The $8,500 in property taxes includes $5,400 in back taxes paid by the...
Tyson Chandler Company purchased equipment for $145,000. The shipping cost was $5,000. Tyson spent an additional $25,000 testing and preparing the equipment for use. What amount should Tyson record as the cost of the equipment? A. $135,000 b. $150,000 c. $165,000 D. $175,000
Stellar Enterprises purchased a new piece of equipment for its factory under a new government incentive program in exchange for cash. The equipment cost $140,000 and had an estimated useful life of 10 years. The program was intended to encourage companies to invest in new, innovative technologies. The new piece of equipment purchased by Stellar qualified for a government grant of $20,000. Stellar collected the grant after providing proof of the purchase. Assuming that Stellar uses the cost reduction method,...
Pina Enterprises purchased a new piece of equipment for its factory under a new government incentive program in exchange for cash. The equipment cost $140,000 and had an estimated useful life of 10 years. The program was intended to encourage companies to invest in new, innovative technologies. The new piece of equipment purchased by Pina qualified for a government grant of $23,800. Pina collected the grant after providing proof of the purchase. Assuming that Pina uses the cost reduction method,...
Windsor Enterprises purchased a new piece of equipment for its
factory under a new government incentive program in exchange for
cash. The equipment cost $147,000 and had an estimated useful life
of 10 years. The program was intended to encourage companies to
invest in new, innovative technologies. The new piece of equipment
purchased by Windsor qualified for a government grant of $20,600.
Windsor collected the grant after providing proof of the
purchase.
Assuming that Windsor uses the cost reduction method,...
Aggie Company purchased a piece of equipment with an invoice price of $80,000 on March 1, 2019. Other information concerning the purchase include the following: (1) Shipping costs totaling $1,000 (2) Sales tax totaling $6,400 (3) Terms of the purchased were 3/20; net 60. The invoice was paid on March 15, 2019. (4) A state agency required that an anti-pollution device be installed on the equipment at a cost of $4,000. (5) During installation, the equipment was damaged and repair...
Company purchased equipment on June 1 for $90,000, paying $20,000 cash Valdosta Garment Company purchased equipment on June and sianina a 9%, 2-month note for the remaining $70,000 balance The for the remaining $70,000 balance. The equipment is expected nrariate $18 000 each year. Valdosta Garment company prepares monthly financial statements. Instructions tal Prepare the general lournal entry to record the acquisition of the equipment on (b) Prepare the 2 adjusting journal entries that should be made on June 30th...
Novak Corporation purchased a piece of equipment for $91,000. Novak wanted to lease out the equipment to a customer for 8 years, at the end of which time the customer could purchase the equipment for $4,800 (at a time when its fair value would be $5,760). Annual payments on the lease would be due at the beginning of each year. In order to earn a 8% return, what minimum lease payments should Novak charge its customer for this equipment lease?
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