Equipment with an estimated market value of $29,889 is offered for sale at $48,377. The equipment is acquired for $14,472 in cash and a note payable of $21,295 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is Oa. $35,767 Ob. $44,361 Oc. $29,889 Od. $14,472

Equipment with an estimated market value of $29,889 is offered for sale at $48,377. The equipment is acquired for $14,472 in cash and a note payable of $21,295 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is Oa. $35,767 Ob. $44,361 Oc. $29,889 Od. $14,472

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Description: gageNOWv2 | Online teachin xzakeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator%3&inprogress3falseEquipment with an estimated market value of $29,889 is offered for sale at $48,377. The equipment is acquired for $14,472 in cas

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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Subject : Accounting
Cornerstone Exercise 7-18 (Algorithmic) Acquisition Cost Cox Company recently purchased a machine by paying $9,900 cash and signing a 6-month, 10% note for $10,000. In addition to the purchase price, Cox incurred the following costs related to the machine: freight charges, $800; interest charges, $500; special foundation for machine, $400; installation costs, $1,10o. Required: Determine the cost of the machine.
A fixed asset with a cost of $32,265 and accumulated depreciation of $29,039 is traded for a similar asset priced at $64,781 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,727, at what cost will the new equipment be recorded in the books? a.$64,781 b.$27,538 c.$4,727 d.$1,501
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Togo’s Sandwich Shop had the following long-term asset balances as of January 1, 2021: Cost Accumulated Depreciation Book ValueLand $ 85,000 – $ 85,000Building 560,000 $ (201,600) 358,400Equipment 145,000 (30,000) 115,000Patent 125,000 (50,000) 75,000Togo’s purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a nine-year useful life using the straight-line method with an estimated residual value of $10,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. Depreciation and…
inventory of 22,200 units cosisted of the following, listed in chronogical order of acquisition: 13,100 units at a cost of $9.00 per unit = $117,900 9,100 units at a cost of $10.00 per unit = 91,000 during 2021, inventory quantity declined by 12,200 units. all units purchased during 2021 cost $13.00 Required: Calculate the before-tax LIFO liquidation profit or loss that the company woul report in disclosure if determined is material?
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