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Crow Company purchased some of the machinery of Hare Incorporated, a bankrupt competitor, at a liquidation sale for a total cost of $15,000. Crow's cost of moving and installing the machinery totaled $2,400. The following data are available: Iten Punch press Lathe Welder Hare's Net Book Value on the Date of Sale $10,530 8,700 2,570 List Price of Same Item If New $18,000 9,000 4,000- Appraiser's Estimate of Fair Value $16,000 6,000 3,030 Required: a. Calculate the amount that should be recorded by Crow Company as the cost of each piece of equipment b. Which of the following alternatives should be used as the depreciable life for Crow Company's depreciation calculation? Complete this question by entering your answers in the tabs below. Required A Required B Calculate the amount that should be recorded by Crow Company as the cost of each piece of equipment. Note: Do not round intermediate calculations. Punch press Purchase Price Allocation Lathe Welder Total $

Crow Company purchased some of the machinery of Hare Incorporated, a bankrupt competitor, at a liquidation sale for a total cost of $15,000. Crow's cost of moving and installing the machinery totaled $2,400. The following data are available: Iten Punch press Lathe Welder Hare's Net Book Value on the Date of Sale $10,530 8,700 2,570 List Price of Same Item If New $18,000 9,000 4,000- Appraiser's Estimate of Fair Value $16,000 6,000 3,030 Required: a. Calculate the amount that should be recorded by Crow Company as the cost of each piece of equipment b. Which of the following alternatives should be used as the depreciable life for Crow Company's depreciation calculation? Complete this question by entering your answers in the tabs below. Required A Required B Calculate the amount that should be recorded by Crow Company as the cost of each piece of equipment. Note: Do not round intermediate calculations. Punch press Purchase Price Allocation Lathe Welder Total $

FINANCIAL ACCOUNTING
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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Crow Company purchased some of the machinery of Hare Incorporated, a bankrupt competitor, at a liquidation sale for a total cost of $15,000. Crow's cost of moving and installing the machinery totaled $2,400. The following data are available: Iten Punch press Lathe Welder Required: Item If New Hare's Net Book Value List Price of Same Appraiser's Estimate on th Date of Sale $ 10,530 of Fair Value $16,000 6.000 3,030 8,700 2,570 $ 10,000 9,000 4,000- a. Calculate the amount that should be recorded by Crow Company as the cost of each piece of equipment b. Which of the following alternatives should be used as the depreciable life for Crow Company's depreciation calculation? Complete this question by entering your answers in the tabs below. Required A Required B Calculate the amount that should be recorded by Crow Company as the cost of each piece of equipment. Note: Do not round intermediate calculations. Punch press Purchase Price Allocation Lathe Welder Total $ 0
Transcribed Image Text:Crow Company purchased some of the machinery of Hare Incorporated, a bankrupt competitor, at a liquidation sale for a total cost of $15,000. Crow's cost of moving and installing the machinery totaled $2,400. The following data are available: Iten Punch press Lathe Welder Required: Item If New Hare's Net Book Value List Price of Same Appraiser's Estimate on th Date of Sale $ 10,530 of Fair Value $16,000 6.000 3,030 8,700 2,570 $ 10,000 9,000 4,000- a. Calculate the amount that should be recorded by Crow Company as the cost of each piece of equipment b. Which of the following alternatives should be used as the depreciable life for Crow Company's depreciation calculation? Complete this question by entering your answers in the tabs below. Required A Required B Calculate the amount that should be recorded by Crow Company as the cost of each piece of equipment. Note: Do not round intermediate calculations. Punch press Purchase Price Allocation Lathe Welder Total $ 0
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