Mars co. need an additional machine on June 1, 2019 to meet the growing demandfor its product. There were two alternatives, first cash purchase $560,000 and secondpaid now 50,000 and 10 semiannual payments of $30,000 due June30 and December31 eachyear (6% effective rate). The company chose the lower cost alternatives andpaid installment 5200, testing 4600, registration fees 3676, and insurance for one year6750. The expected economic life of this machine t is 8 years. Salvage value at thattime is estimated to be $10,000. The company used sum of the year's depreciationmethodRequired:1) journalize the purchased of machine2) calculate and journalize the depreciation in 31/12/2019 and 31/12/2020.

Name: Mars co. need an additional machine on June 1, 2019 to meet the growi
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Description: Mars co. need an additional machine on June 1, 2019 to meet the growing demandfor its product. There were two alternatives, first cash purchase $560,000 and secondpaid now 50,000 and 10 semiannual payments of $30,000 due June30 and December31 eachye

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ere two alternatives, first cash purchase $560,000 and secor semiannual payments of $30,000 due June30 and Decemb- ive rate). The company chose the lower cost alternatives an esting 4600, registration fees 3676, and insurance for one ye nomic life of this machine t is 8 years. Salvage value at that 10,000. The company used sum of the year's depreciation ased of machine 21/12/2010

ere two alternatives, first cash purchase $560,000 and secor semiannual payments of $30,000 due June30 and Decemb- ive rate). The company chose the lower cost alternatives an esting 4600, registration fees 3676, and insurance for one ye nomic life of this machine t is 8 years. Salvage value at that 10,000. The company used sum of the year's depreciation ased of machine 21/12/2010

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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