An entity acquired a machine and incurred the following costs: Cash paid for machine, including VAT of 896,000 96,000 Cost of transporting machine 30,000 Cost of installation 50,000 Cost of testing machine 40,000 Cost of safety rails and platform surrounding 60,000 machine Cost of water device to keep machine cool 80,000 Cost of adjustment to machine to make it 75,000 operate more efficiently Cost of repairing damage during installation 45,000 Cost of spare parts to cover breakdowns 155,000 Estimated dismantling cost to be incurred as 65,000 required by contract Insurance cost for the current year 15,000 Cost of training personnel who will use the 25,000 machine What total amount should be capitalized as cost of the machine?

An entity acquired a machine and incurred the following costs: Cash paid for machine, including VAT of 896,000 96,000 Cost of transporting machine 30,000 Cost of installation 50,000 Cost of testing machine 40,000 Cost of safety rails and platform surrounding 60,000 machine Cost of water device to keep machine cool 80,000 Cost of adjustment to machine to make it 75,000 operate more efficiently Cost of repairing damage during installation 45,000 Cost of spare parts to cover breakdowns 155,000 Estimated dismantling cost to be incurred as 65,000 required by contract Insurance cost for the current year 15,000 Cost of training personnel who will use the 25,000 machine What total amount should be capitalized as cost of the machine?

Name: An entity acquired a machine and incurred the following costs:Cash pa
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: An entity acquired a machine and incurred the following costs:Cash paid for machine, including VAT of896,00096,000Cost of transporting machineCost of installation30,00050,000Cost of testing machine40,000Cost of safety rails and platform surrounding6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Windsor, Inc. purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $59,200; broker's fees, $6,460; title search and other fees, $5,190; demolition of an old building on the property, $6,170; grading, $1,450; digging foundation for the road, $3,230; laying and paving driveway, $27,800; lighting $7,910; signs, $1,980. List the items and amounts that should be included in the Land account. $ A
A company purchased property for a building site. The costs associated with the property were: Purchase price $175,000 Real estate commissions 15,000 Legal fees. Expenses of clearing the land Expenses to remove old building 800 2,000 1,000 What portion of these costs should be allocated to the cost of the land and what portion should be alloca the cost of the new building? $175,800 to Land; $18,800 to Building O $190,000 to Land; $3,800 to Building $190,800 to Land; $1,000 to Building O $192,800 to Land; $0 to Building O $193,800 to Land; $0 to Building
Shahia Company bought a building for $88,000 cash and the land on which it was located for $111,000 cash. The company paid transfer costs of $16,000 ($8,000 for the building and $8,000 for the land). Renovation costs on the building before it could be used were $15,000. 8-3 Part 1 equired: Prepare the journal entry to record the purchase of the property, including all relevant expenditures. Assume that all transaction ere for cash and that all purchases occurred at the start of the year. ote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No 1 Transaction a Building Land Cash General Journal DHOL S Debit 5 — Credit Next Ⓒ
A company is considering investment of k1,000,000 in a project. The following are the forecasts, after depreciation and tax. Year 1 Cash Inflows Discount Present Value Factor at 10% 1 10,000 0.9091 2 40,000 0.8265 3 60,000 0.7513 4 20,000 0.6830 5 - 0.6209 Compute: Payback period Discounted payback Net present value In all instances comment on the Decision criteria
Peak, Inc., acquired a machine that involved the following expenditures and related factors: Gross invoice price Sales tax Cash discount taken Freight Assembly of machine Installation of machine Repair of machine damage caused during installation Tuning and adjusting machine before use A) $68,352 The initial accounting cost of the machine should be: B) $63,232 C) $56,032 $54,400 3,520 1,088 1,920 1,600 2,400 5,120 D) $64,032 1,280
Want correct answer
Stella Company uses many kinds of machines in its operations. The following information relates to a machine that was acquired at the beginning of the current year: Cash paid for machine, including VAT of P96,000 Cost of transporting the machine Labor cost of installation by expert fitter 896,000 30,000 50,000 Labor cost of testing machine Cost of safety rails and platform surrounding machine Cost of water device to keep machine cool 40,000 60,000 80,000 Cost of adjustment to machine to make it operate more efficiently Estimated dismantling cost to be incurred as required by contract Insurance cost for the current year 75,000 65,000 15,000 Cost of training personnel who will use the machine 25,000 How much should be capitalized as cost of the machine?
i need help with this question please
Farley Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $70,000; broker's fees, $6,000; title search and other fees, $5,000; demolition of an old building on the property, $5,700; grading $1,200; digging foundation for the road, $3,000; laying and paving driveway. $25,000; lighting $7,500; signs, $1,500. List the items and amounts that should be included in the Land account. $ $
Determining the Cost of an AssetOmar Corporation paid $200,000 for a tract of land that had an old gas station on it. The gas station was demolished at a cost of $20,000 and a new warehouse was constructed on the site at a cost of $550,000. In addition, several other costs were incurred: Legal fees (associated with the purchase of the land) $35,000 Architect fees (associated with the new warehouse) $42,000 Interest on the construction loan (for the new warehouse) $18,000 (a) What value should be assigned to the tract of land? $Answer (b) What value should be assigned to the new warehouse? $Answer
14. A company purchased a 10 - ton draw press at a cost of $187,000 with terms of 2/15, n 45. Payment was made within the discount period. Shipping costs were $3,800, which included $320 for insurance in transit. Installation costs totaled $12,900, which included $ 4,600 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10 - ton draw press is:
Danube, Toggle, and ConnectOn rely on various intangible assets to operate their businesses. These companies amortize the cost of these assets using the straight-line method over the following average estimated useful lives (in years), as reported in their annual reports. Type of Intangible Asset Developed Technology Danube 5.4 Trade Names 5.9 Toggle 5.6 10.1 ConnectOn 3.5 11.5 Customer Relationships 5.1 5.5 7.5 Required: 1. Based on these estimates, identify the company that uses the longest periods for amortizing most of its classes of intangible assets. Toggle Danube ConnectOn 2. Will these estimates increase or decrease that company's net income relative to its competitors? Increase Decrease