]nces1. List price: $44,300; terms: 2/10, n/30; paid within the discount period.2. Transportation-in: $800.3. Installation: $540.4. Cost to repair damage during unloading: $549.5. Routine maintenance cost after eight months: $140.Basket Purchase of Copier, Computer, and Scanner for $47,200 with Fair Market Values1. Copier, $23,898.2. Computer, $6,259.3. Scanner, $26,743.Land for New Warehouse with an Old Building Torn Down1. Purchase price, $81,800.2. Demolition of building, $5,380.3. Lumber sold from old building, $1,090.4. Grading in preparation for new building, $7,600.5. Construction of new building, $208,000.RequiredIn each of these cases, determine the amount of cost to be capitalized in the asset accounts.AssetOffice equipmentBasket purchase:CopierComputerScannerTotal cost to be capitalizedLand and buildingCost of landConstruction costsTotal cost to he canitalizedEAllocated CostsTotal$44,754$25,204

Capitalization of costs are considered as part of fixed assets instead of stating them as expenses…

1. List price: $44,300; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $800. 3. Installation: $540. 4. Cost to repair damage during unloading: $549. 5. Routine maintenance cost after eight months: $140. Basket Purchase of Copier, Computer, and Scanner for $47,200 with Fair Market Value:

1. List price: $44,300; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $800. 3. Installation: $540. 4. Cost to repair damage during unloading: $549. 5. Routine maintenance cost after eight months: $140. Basket Purchase of Copier, Computer, and Scanner for $47,200 with Fair Market Value:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Basket Purchase of Copier, Computer, and Scanner for $50,200 with Fair Market Values Copier, $24,200. Computer, $10,285. Scanner, $26,015. Land for New Warehouse with an Old Building Torn Down Purchase price, $77,900. Demolition of building, $5,290. Lumber sold from old building, $2,880. Grading in preparation for new building, $7,000 Construction of New Building Construction of new building, $290,000 RequiredIn case of office equipment, determine the amount of cost to be capitalized in the asset accounts. In case of basket purchase, determine the amount of cost to be capitalized in the asset accounts. In case of land, determine the amount of cost to be capitalized in the asset accounts. In case of new building, determine the amount of cost to be capitalized in the asset accounts.
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