Kindly help me with accounting questions A company purchased for cash manufacturing equipment with a list price of$75,000. The equipment was shipped FOB shipping point at a cost of $4,200.Installation costs were $2,800, and initial testing costs were $1,500. Therecorded acquisition cost of the equipment is which amount?a. $75,000b. $79,200c. $82,000d. $83,500

Step 1: Definition of Acquisition CostThe acquisition cost of equipment includes all costs necessary…

Answered: A company purchased for cash…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 5CE: Prepare journal entries for the following transactions: a. A machine with a cost of 10,000 and...

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Andronicus Corporation (AC) has the following jumbled information about an investment proposal: a. Revenues in each of years 1-4 = $21,000 b. Year O initial investment = $41,000 c. Inventory level = $10,500 in year 1, $11,100 in year 2, and $5,500 in year 3 d. Production costs = $7,300 in each of years 1-4 e. Salvage value = $12,100 in year 4 f. Depreciation = 100% immediate bonus depreciation g. Tax rate = 21% h. There is an additional 6-month lag for all cash flows after year O. For example, customers pay consistently with a 6-month lag, as AC does for production costs, taxes, etc. Draw up a set of cash flow forecasts as in Table 6.4. If the cost of capital is 10%, what is the project's NPV? Assume that, if the project generates losses, those losses can be used to offset profits for tax purposes elsewhere in the business. Note: Do not round your intermediate calculations. Round your final answer to the nearest whole dollar amount. NPV Answer is complete but not entirely correct. $…
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Andronicus Corporation has the following jumbled information about an investment proposal: a. Revenues in each of years 1-4 = $38,000 b. Year O initial investment = $58,000 c. Inventory level = $19,000 in year 1, $21,300 in year 2, and $14,000 in year 3 d. Production costs $12,400 in each of years 1-4 e. Salvage value = $13,800 in year 4 f. Depreciation = 100% immediate bonus depreciation g. Tax rate 21% h. Customers pay with a 6-month lag Draw up a set of cash flow forecasts as in Table 6.4. If the cost of capital is 12%, what is the project's NPV? Assume that, if the project generates losses, those losses can be used to offset profits elsewhere in the business. Note: Do not round your intermediate calculations. Round your final answer to the nearest whole dollar amount. NPV
ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65. Installation cost is P50,000. Decommissioning cost is P200,000. Expected useful life is 10 years and effective rate was 12% How much is the initial cost of the equipment? 2,550,000 2,539,395 2,614,395 2,750,000
A new machine with a purchase price of $90,021, with transportation costs of $9,593, installation costs of $6,472, and special acquisition fees of $2,612, would have a cost basis of a. $108,698 b. $96,493 Oc. $90,021 d. $99,105
A new machine with a purchase price of $90,429.00, with transportation costs of $9,194.00, installation costs of $5,756.00, and special acquisition fees of $2,100.00. Calculate a cost basis. Select the correct answer. $90,429.00 $98,285.00 $107,479.00 $96,185.00
In comparing the machines on a present worth basis, the present worth of machine P is closest to:a. $ -82,130b. $-87,840c. $-91,568d. $-112,230
A new machine with a purchase price of $99,636, with transportation costs of $7,636, installation costs of $6,624, and special acquisition fees of $2,678, would have a cost basis of a.$108,938 b.$116,574 c.$99,636 d.$106,260
The components of the cost of a major item of equipment are given below: $ Purchase price 780,000 Import duties 117,000 VAT (refundable) 78,000 Site preparation 30,000 Installation 28,000 Testing 10,000 Initial losses before asset reaches planned performance 50,000 Discounted cost of dismantling and removal at end of useful life 40,000 1,133,000 What amount should be recognised as the cost of the asset in accordance with IAS 16 Property, plant and equipment ?

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