Need answer the accounting question do fast Compute the amount recorded as the cost of a newmachine given the following payments related to itspurchase: gross purchase price, $700,000; salestax, $49,000; purchase discount taken, $21,000;freight cost-terms FOB shipping point, $3,500;normal assembly costs, $3,000; cost of necessarymachine platform, $2,500; cost of parts used inmaintaining machine, $4,200.

Step 1: Define Fixed AssetThe acquisition of a fixed asset may involve many costs other than the…

Answered: Compute the amount recorded as the cost…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EA: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following...

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Determine the total recorded cost of the new machine on these general accounting question
The acquisition of a new machine with a purchase price of $82,058, transportation costs of $7,947, installation costs of $5,554, and special acquisition fees of $2,127, would be journalized with a debit to the asset account for
A new machine with a purchase price of $83,068.00, with transportation costs of $8,140.00, installation costs of $5,906.00, and special acquisition fees of $2,555.00. Calculate a cost basis. Select the correct answer. $83,068.00 $99,669.00 $91,529.00 $88,974.00
Nelson Company purchased equipment and incurred the following costs: Cash price = $55,000 Sales taxes = $4,400 Insurance during transit = $400 Site preparation, installation, and testing= $2,300What amount should be used as the cost basis of the equipment?
The acquisition of a used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000 would be journalized with a debit to the asset account for?
The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221, installation costs of $6,311, and special acquisition fees of $2,597, would be journalized with a debit to the asset account for Oa. $80,545 Ob. $89,453 Oc. $86,856 Od. $98,674
Crane Company incurs these expenditures in purchasing a truck: cash price $22,480, accident insurance (during use) $1,570, sales taxes $1,690, motor vehicle license $590, and painting and lettering $2,460.What is the cost of the truck? The cost of the truck $Enter a dollar amount
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 ?
The components of the cost of a major item of equipment are given below. GHS Purchaseprice 780,000 Import duties 117,000VAT (refundable) 78,000 Site preparation 30,000 Installation costs 28,000 Pre-production 18,000 Initial operating losses before the asset reaches planned performance…
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 equipment
The components of the cost of a major item of equipment are given below.GHSPurchase price 780,000Import duties 117,000VAT (refundable) 78,000Site preparation 30,000Installation costs 28,000Pre-production costs 18,000Initial operating losses before the asset reaches planned performance 50,000Estimated cost of dismantling and removal of the asset, recognized as a provision under IAS 37 Provisions,Contingent Liabilities and Contingent Assets 100,0001,201,000In accordance with IAS 16 Property, Plant and Equipment, what amount should be recognized as the cost of the asset?
A machine with a cost of $150,000 and accumulated depreciation of $95,000 is sold for $70,000 cash. The amount that should be reported in the operating activities section reported under the direct method is: Multiple Choice $70,000. $15,000. $55,000.

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