DAVE Shop purchased the following used equipment at a special auction sale for $400,000 cash; a drill press, a lathe, and a heavy duty air compressor. The equipment was in excellent condition except for the electric motor on the lathe, which will cost $9,000 to replace with a new motor, Heavy was determined that the selling price for the used items in local outlets are approximately as follows: Drill press- $84,000 Lathe, with a good motor- P 240,000 Air Compressor - $105,000. How much is the allocated cost of drill press?
DAVE Shop purchased the following used equipment at a special auction sale for $400,000 cash; a drill press, a lathe, and a heavy duty air compressor. The equipment was in excellent condition except for the electric motor on the lathe, which will cost $9,000 to replace with a new motor, Heavy was determined that the selling price for the used items in local outlets are approximately as follows: Drill press- $84,000 Lathe, with a good motor- P 240,000 Air Compressor - $105,000. How much is the allocated cost of drill press?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DAVE Shop purchased the following used equipment at a special auction sale for $400,000 cash; a drill press, a lathe, and a heavy duty air compressor. The equipment was in excellent condition except for the electric motor on the lathe, which will cost $9,000 to replace with a new motor, Heavy was determined that the selling price for the used items in local outlets are approximately as follows:
Drill press- $84,000
Lathe, with a good motor- P 240,000
Air Compressor - $105,000.
How much is the allocated cost of drill press?
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