Ballyhigh Company purchased equipment for $20,000. Sales tax on the purchase was $1,500. Other costs incurred were freight charges of $400, repairs of $350 for damage during installation, and installation costs of $450. What is the capitalizable cost of the equipment? A) $21,500 B) $21,850 C) $22,350 D) $22,700
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- Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? A. $60,600 B. $66,100 C. $54,000 D. $59,400Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.
- Bonita Industries purchased equipment for $30600. Sales tax on the purchase was $1450. Other costs incurred were freight charges of $360, repairs of $700 for damage during installation, and installation costs of $410. What is the cost of the equipment? $30600. $33520. $32820. $32050.Worthington Chandler purchased equipment for $40k. Sales tax on the purchase was $2400. Other costs incurred were freight charges of $600 repairs of $350 for damage during installation and installation costs of $675. What is the cost of the equupment? a.) 43,675 b.) 40k c.) 42,400 d.) 44,025Marigold Corp. purchased equipment for $31200. Sales tax on the purchase was $1470. Other costs incurred were freight charges of $390, repairs of $690 for damage during installation, and installation costs of $400. What is the cost of the equipment? $31200. $34150. $33460. $32670.
- Swifty Corporation purchased equipment for $43200. Sales tax on the purchase was $2592. Other costs incurred were freight charges of $648, repairs of $378 for damage during installation, and installation costs of $722. What is the cost of the equipment? Select answer from the options below $43200 $45792 $47162 $47540Warren Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200, and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? Select one: $59,400 $60,600 $66,100 $54,000Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costsamounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs thatshould be capitalized?A. $60,600B. $66,100C. $54,000D. $59,400
- Mad Hatter Enterprises purchased new equipment for $362,000, terms f.o.b. shipping point. Other costs connected with the purchase were as follows: State sales tax Freight costs Insurance while in transit Insurance after equipment placed in service Installation costs Insurance for the first year of operations Testing $28,900 5, 300 770 1,170 1,850 2, 250 670 Required: Determine the capitalized cost of the equipment. Cost of equipmentPeak, 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 1,280A piece of machinery has marked price of P550,000. It was purchased under the term 15%, 10%, and 5% discounts. The cost of freight and installation after deducting the P8,000 sales proceeds of the old machinery which was replaced is P12,000. The new machinery shall be recorded at a cost of A. 411,712 B. 405,000 C. 419,712 D. 397,000