Homework Answers
| Option is 3 | 7200 | |
| cost of equipment | 30000 | |
| sales tax paid | 3000 | |
| Installation cost | 5000 | |
| total cost of equipment | 38000 | |
| Scrap value of equipment | 2000 | |
| total cost of equipment to be depreciated | (38000-2000) | 36000 |
| life of equipment | 5 | |
| Annual depreciation = total cost of equipment to be depreciated/life of equipment | 36000/5 | 7200 |
| Book value of equipment | 38000-7200 | 30800 |
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what is the vook value of the machine they own at the end of year
1?...
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of...
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $27,000. On the date of delivery, January 2, the company paid $7,000 on the machine, with the balance on credit at 9 percent interest due in six months. On January 3, it paid $1,100 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,900. On July 1, the company paid the balance due on the...
Please answer the "Required 1" showing the apportionment of cost, cost of each machine, depreciation or amortization exp...
Please answer the "Required 1" showing the apportionment of
cost, cost of each machine, depreciation or amortization expense,
journal entry, and journal entries for each machine: Compute the
cost of each machine by making a supportable allocation of the
total cost to the three machines (round your calculations to two
decimal places). Explain the rationale for the allocation basis
used.
2. What was the carrying amount of the building on December 31, 2018? 3. Explain the effect of depreciation on...
5) Mandy Manufacturing purchased a machine on August 1, 2014, and it was installed and ready...
5) Mandy Manufacturing purchased a machine on August 1, 2014, and it was installed and ready to run on January 1, 2015. The following costs were incurred in the purchase and installation of the machine. Invoice price $ 1,300,000 Freight costs 7.000 Purchase discount 2.500 Installation costs 66,000 Electrical and power connections 32,000 Repairs to correct damage incurred during uncrating 12.000 Adjustment costs 36,000 Spare parts for future use 25,000 Provincial sales tas 91.000 Fines incurred during the transport and...
(a) Reda Company is planning to acquire a machine. The following costs relate to the machine:...
(a) Reda Company is planning to acquire a machine. The following costs relate to the machine: List price Tax Freight New parts to replace those damaged in unlouding Installation Repair of vandalism during installation Assembly Special foundation to be laid on the floor Testing for use Monthly maintenance S 80.000 6.00 1.000 2.000 1.500 1.200) 2.200 3.800 1,500 300 A 10% discount will be given off the list price. Identify and compute the cost of the machine. Explain your reasoning....
At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The...
At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A Machine B Machine C Cost of the asset $ 9,800 $ 39,000 $ 22,800 Installation costs 950 2,900 2,000 Renovation costs prior to use 750 2,500 3,000 Repairs after production began 500 900 1,500 By the end of the first year,...
A company pays $30,000 for two machines. Machine A is appraised at a fair market value...
A company pays $30,000 for two machines. Machine A is appraised at a fair market value of $24,000 and Machine B at a fair market value of $8,000. The cost of Machine B is recorded for book purposes at 25. .. a. $7,500 b. $8,000 c. $24,000 d. $30,000 26. On July , 2016, a calendar-year corporation purchases a new passenger auto for $25,000. The maximum tax depreciation allowed on the auto in 2016 is... a. $15,000 d. $7,660 c....
A machine costing $210,000 with a four-year life and an estimated $18,000 salvage value is installed...
A machine costing $210,000 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 480,000 units of product during its life. It actually produces the following units: 123,000 in 1st year, 123,500 in 2nd year, 119,900 in 3rd year, 123,600 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $212,800 with a four-year life and an estimated $16,000 salvage value is installed...
A machine costing $212,800 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actually produces the following units: 122,000 in 1st year, 124,300 in 2nd year, 119,700 in 3rd year, 136,000 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
On January 1 of the current year, Thayer Manufacturing Company purchased a metal cutting and polishing...
On January 1 of the current year, Thayer Manufacturing Company purchased a metal cutting and polishing machine at a cost of $4,700,000. The installation and delivery costs amounted to $300,000. The firm expects the machine to be productive for a total of 5 years and a residual value of $450,000 at the end of the asset's useful life. Read the requirements. Requirement 1. Prepare the depreciation schedules for the machine assuming that Thayer Manufacturing uses the straight-line method. A Requirements...
A machine costing $213,800 with a four-year life and an estimated $19,000 salvage value is installed...
A machine costing $213,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produces the following units: 122,500 in Year 1 124,300 in Year 2.120,400 in Year 3, 129,800 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate--this difference was not predicted. (The...
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $27,000. On the date of delivery, January 2, the company paid $7,000 on the machine, with the balance on credit at 9 percent interest due in six months. On January 3, it paid $1,100 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,900. On July 1, the company paid the balance due on the...
Please answer the "Required 1" showing the apportionment of
cost, cost of each machine, depreciation or amortization expense,
journal entry, and journal entries for each machine: Compute the
cost of each machine by making a supportable allocation of the
total cost to the three machines (round your calculations to two
decimal places). Explain the rationale for the allocation basis
used.
2. What was the carrying amount of the building on December 31, 2018? 3. Explain the effect of depreciation on...
5) Mandy Manufacturing purchased a machine on August 1, 2014, and it was installed and ready to run on January 1, 2015. The following costs were incurred in the purchase and installation of the machine. Invoice price $ 1,300,000 Freight costs 7.000 Purchase discount 2.500 Installation costs 66,000 Electrical and power connections 32,000 Repairs to correct damage incurred during uncrating 12.000 Adjustment costs 36,000 Spare parts for future use 25,000 Provincial sales tas 91.000 Fines incurred during the transport and...
(a) Reda Company is planning to acquire a machine. The following costs relate to the machine: List price Tax Freight New parts to replace those damaged in unlouding Installation Repair of vandalism during installation Assembly Special foundation to be laid on the floor Testing for use Monthly maintenance S 80.000 6.00 1.000 2.000 1.500 1.200) 2.200 3.800 1,500 300 A 10% discount will be given off the list price. Identify and compute the cost of the machine. Explain your reasoning....
A company pays $30,000 for two machines. Machine A is appraised at a fair market value of $24,000 and Machine B at a fair market value of $8,000. The cost of Machine B is recorded for book purposes at 25. .. a. $7,500 b. $8,000 c. $24,000 d. $30,000 26. On July , 2016, a calendar-year corporation purchases a new passenger auto for $25,000. The maximum tax depreciation allowed on the auto in 2016 is... a. $15,000 d. $7,660 c....
A machine costing $212,800 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actually produces the following units: 122,000 in 1st year, 124,300 in 2nd year, 119,700 in 3rd year, 136,000 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
On January 1 of the current year, Thayer Manufacturing Company purchased a metal cutting and polishing machine at a cost of $4,700,000. The installation and delivery costs amounted to $300,000. The firm expects the machine to be productive for a total of 5 years and a residual value of $450,000 at the end of the asset's useful life. Read the requirements. Requirement 1. Prepare the depreciation schedules for the machine assuming that Thayer Manufacturing uses the straight-line method. A Requirements...
A machine costing $213,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produces the following units: 122,500 in Year 1 124,300 in Year 2.120,400 in Year 3, 129,800 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate--this difference was not predicted. (The...
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