factory equipment for $850,000. In addition, it paid $82,000 in sales tax and $7,000 in installation charges. Shipping costs to ship the equipment to the factory were $2,500 and were paid by Lauren. Lauren paid $300,000 in cash and signed a two-year note for the balance. Required: a. Prepare the journal entry to record the acquisition of this equipment. b. Assuming straight-line depreciation, an estimated residual value of $75.000 and an estimated life of

factory equipment for $850,000. In addition, it paid $82,000 in sales tax and $7,000 in installation charges. Shipping costs to ship the equipment to the factory were $2,500 and were paid by Lauren. Lauren paid $300,000 in cash and signed a two-year note for the balance. Required: a. Prepare the journal entry to record the acquisition of this equipment. b. Assuming straight-line depreciation, an estimated residual value of $75.000 and an estimated life of

Name: 4. On January 2, 2022, Lauren Corporation purchasedfactory equipment
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Description: 4. On January 2, 2022, Lauren Corporation purchasedfactory equipment for $850,000. In addition, it paid$82,000 in sales tax and $7,000 in installation charges.Shipping costs to ship the equipment to the factorywere $2,500 and were paid by Lauren. La

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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White Mountain Supply Company purchases warehouse shelving for $18,500. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 9 years and have a scrap value of $700. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (a) What is the annual depreciation expense (in $) of the shelving? (b) What is the accumulated depreciation (in $) after the third year? (c) What is the book value of the shelving (in $) after the fifth year?
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White Mountain Supply Company purchases warehouse shelving for $18,400. Shipping charges were $370, and assembly and setup amounted to $375. The shelves are expected to last for 8 years and have a scrap value of $700: Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (a) What is the annual depreciation expense (in $) of the shelving)