Homework Answers
Repairs and Maintenance expenses which increases the usefulness( useful life) and efficiency of the asset shall be capitalized and depreciated over the remaining useful life of an asset. Not all repairs and Maintenance expenses shall be expensed also not all repairs and maintenance expenses capitalized.
So Option 1 is Correct.
Add Answer to:
17 in the year it is incurred O All repair and maintenance expenditures are accounted for...
Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its machinery,...
Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its machinery, $5,600; remodeling of offices, $22,200; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,200; addition of a security system to the manufacturing facility, $25,200 How should Demmert account for each of these expenditures? Expenditure Amount Classification Accounting treatment Annual maintenance on machinery Remodeling of offices Rearrangement of the shipping and receiving area Addition of a security system
Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its equipment,...
Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its equipment, $5,900; remodeling of offices, $22,500; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,500; addition of a security system to the manufacturing facility, $25,500. How should Demmert account for each of these expenditures? Amount Classification Accounting treatment Expenditure Annual maintenance on equipment Remodeling of offices Rearrangement of the shipping and receiving area Addition of a security system
Which of the following expenditures should be expensed in the year incurred [mark all that apply]?...
Which of the following expenditures should be expensed in the year incurred [mark all that apply]? Research Development Rent one year before it is due Equipment Purchase Utilities for the just completed month
Betterment versus Maintenance Expenditures. During the year, the company made the following expenditures relating to plant,...
Betterment versus Maintenance Expenditures. During the year, the company made the following expenditures relating to plant, machinery, and equipment: • Completed regularly scheduled repairs at a cost of $250,000. • Overhauled several stamping machines at a cost of $500,000 to improve production efficiency. • Replaced a broken cooling pump on a 100-ton press at a cost of $25,000. Question: Identify which expenditures should be expensed as a maintenance expense or capitalized as a betterment outlay.
E10-20 Expenditures After Acquisition McClain Company incurred the following expenditures during 2016: Apr. 9 June 29...
E10-20 Expenditures After Acquisition McClain Company incurred the following expenditures during 2016: Apr. 9 June 29 Sept. 12 Dec. 28 The air conditioning system in the old manufacturing facility was replaced for $83,000. The old air conditioning system had a cost of $74,000 and a book value of $2,000. The old air conditioning system had no scrap value. Annual maintenance of $38,000 was performed. The roof of the old manufacturing facility is replaced at a cost of $65,000. This expenditure...
McClain Company incurred the following expenditures during 2016: Apr. 9 The air conditioning system in the...
McClain Company incurred the following expenditures during 2016: Apr. 9 The air conditioning system in the old manufacturing facility was replaced for $83,000. The old air conditioning system had a cost of $74,000 and a book value of $2,000. The old air conditioning system had no scrap value. June 29 Annual maintenance of $38,000 was performed. Sept. 12 The roof of the old manufacturing facility is replaced at a cost of $65,000. This expenditure substantially extended the life of the...
htlowb age 224 of 734 Contents costs incurred, along with the number of maintenance and repair...
htlowb age 224 of 734 Contents costs incurred, along with the number of maintenance and repair jobs completed each month The data are shown below: Jobs Month January February March... April...... May June, July August.... September... October.. Repair Costs $22.000 $18.000 $7600 $20,000 $24,000 $22.400 $ 16,000 $ 12,800 $ 13,600 $ 9600 Required: 1. Using Microsoft Excel, prepare a scattergram by plotting jobs performed and repair costs on a graph. Fit a straight line to the plotted points using...
The maintenance cost is incurred at the end of the year Two machines are being considered...
The maintenance cost is incurred at the end of the year
Two machines are being considered for the same task. Machine A costs $18,000 new and is estimated to last 6 years. The cost to replace machine A after 6 years will be $23,000. Machine A will cost $1,200 per year to operate/maintain and it will have a trade-in (salvage) value of $1,500. Machine B costs $38,000 to buy, will last 12 years and will have a trade in value...
(1pts) 17) Blue Corporation incurred the following expenses in connection with the development of a new...
(1pts) 17) Blue Corporation incurred the following expenses in connection with the development of a new product: Salaries Utilities Materials Advertising Market survey Depreciation on machine $100,000 18,000 25,000 5,000 3,000 9,000 Blue expects to begin selling the product next year. If Blue elects to amortize research and experimental expenditures over 60 months, determine the amount of the deduction for research and experimental expenditures for the current year. a. $0 b. $118,000 c. $143,000 d. $152,000
3 A company incurred the following expenditures on a motor van. year 1 year 2 year...
3 A company incurred the following expenditures on a motor van. year 1 year 2 year 2 purchase of motor van purchase of new tyres purchase of trailer attached to the motor van 80 000 2000 10000 Depreciation to all vehicles is 20% on cost. A full year's depreciation is charged in the year of purchase. What was the depreciation charge on vehicles for year 2? A $16000 B $16400 C $18000 D $18400 4 Which items will be debited...
Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its machinery, $5,600; remodeling of offices, $22,200; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,200; addition of a security system to the manufacturing facility, $25,200 How should Demmert account for each of these expenditures? Expenditure Amount Classification Accounting treatment Annual maintenance on machinery Remodeling of offices Rearrangement of the shipping and receiving area Addition of a security system
Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its equipment, $5,900; remodeling of offices, $22,500; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,500; addition of a security system to the manufacturing facility, $25,500. How should Demmert account for each of these expenditures? Amount Classification Accounting treatment Expenditure Annual maintenance on equipment Remodeling of offices Rearrangement of the shipping and receiving area Addition of a security system
htlowb age 224 of 734 Contents costs incurred, along with the number of maintenance and repair jobs completed each month The data are shown below: Jobs Month January February March... April...... May June, July August.... September... October.. Repair Costs $22.000 $18.000 $7600 $20,000 $24,000 $22.400 $ 16,000 $ 12,800 $ 13,600 $ 9600 Required: 1. Using Microsoft Excel, prepare a scattergram by plotting jobs performed and repair costs on a graph. Fit a straight line to the plotted points using...
The maintenance cost is incurred at the end of the year
Two machines are being considered for the same task. Machine A costs $18,000 new and is estimated to last 6 years. The cost to replace machine A after 6 years will be $23,000. Machine A will cost $1,200 per year to operate/maintain and it will have a trade-in (salvage) value of $1,500. Machine B costs $38,000 to buy, will last 12 years and will have a trade in value...
(1pts) 17) Blue Corporation incurred the following expenses in connection with the development of a new product: Salaries Utilities Materials Advertising Market survey Depreciation on machine $100,000 18,000 25,000 5,000 3,000 9,000 Blue expects to begin selling the product next year. If Blue elects to amortize research and experimental expenditures over 60 months, determine the amount of the deduction for research and experimental expenditures for the current year. a. $0 b. $118,000 c. $143,000 d. $152,000
3 A company incurred the following expenditures on a motor van. year 1 year 2 year 2 purchase of motor van purchase of new tyres purchase of trailer attached to the motor van 80 000 2000 10000 Depreciation to all vehicles is 20% on cost. A full year's depreciation is charged in the year of purchase. What was the depreciation charge on vehicles for year 2? A $16000 B $16400 C $18000 D $18400 4 Which items will be debited...
Most questions answered within 3 hours.
-
You capture data by having 8 people fill in 30 small dots on a
piece of...
asked 3 hours ago -
What are the z-values such that 70% of the area lies in the
middle of the...
asked 5 hours ago -
You borrow $29,500 to purchase a brand new car. The interest
rate is 6%, and the...
asked 4 hours ago -
The amount of time it takes an asteroid, whose average distance
from the Sun is 4.70...
asked 5 hours ago -
A 0.289 kg mass slides on a frictionless floor with a speed of
1.34 m/s. The...
asked 5 hours ago -
15.A box contains five red balls, three green balls, and two
yellow balls. Suppose you select...
asked 7 hours ago -
Assume you are given the following for Stackelberg industries:
Return on Assets (ROA) = 8%
Debt...
asked 6 hours ago -
an engineer proposes to use mmWave in 5G network to
increase data rate.
What are the...
asked 6 hours ago -
Explain the idea behind using SEMIJOIN in distributed
query processing.
asked 6 hours ago -
why
is context important in selecting and applying guidelines and
principles for interface design?
illustrate your...
asked 6 hours ago -
In a certain board game, a player rolls two fair six-sided dice
until the player rolls...
asked 7 hours ago -
You are going to deposit $3,200 in an account that pays .58
percent interest compounded quarterly....
asked 6 hours ago