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 List Price of Same Iten If New Appraiser's Estimate of Fair Value $ 10,530 8,700 2,570 $ 18,000 9,000 4,000 $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. Purchase Price Allocation Punch press Lathe Welder $ 0 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 List Price of Same Iten If New Appraiser's Estimate of Fair Value $ 10,530 8,700 2,570 $ 18,000 9,000 4,000 $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. Purchase Price Allocation Punch press Lathe Welder $ 0 Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Hare's Net Book Value
on the Date of Sale
List Price of Same
Iten If New
Appraiser's Estimate
of Fair Value
$ 10,530
8,700
2,570
$ 18,000
9,000
4,000
$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.
Purchase Price
Allocation
Punch press
Lathe
Welder
$
0
Total
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