Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each...

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Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New

business accounting

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Answer 1

Answer #1

Part-1: New Equipment
Details	Amount
Cost of the equipment after discount (40500*.98)	$39,690.00
Transportation-in	$750.00
Installation	$550.00
Cost to repair damage during unloading	$651.00
Total cost to be capitalized	$41,641.00

Part-2
Details	Allocated Cost
Copier	$17,390.00
Computer	$7,990.00
Scanner (47000*26036/(20942+9622+26036)	$21,620.00
Total	$47,000.00

Part-3
Details	Allocated Cost
Cost of Land
Purchase Price	$81,000.00
Demolition	$5,310.00
Lumber Sold	$2,760.00
Grading	$6,300.00

Construction Cost	$224,000.00
Total Cost	$319,370.00

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