Need answer HB Corporation purchased equipment andincurred the following costs:Cash priceSales taxes$23,400$2,100Installation and testing $500They will record the acquisition cost of theequipment as $

Explanation of Acquisition Cost: This is the total cost required to acquire and prepare an asset for…

Answered: HB Corporation purchased equipment and…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter2: Asset And Liability Valuation And Income Recognition

Section: Chapter Questions

Problem 5QE

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Ivanhoe Company purchased equipment and these costs were incurred: Cash price $49000 Sales taxes 3100 Insurance during transit 770 Installation and testing 970 Total costs $53840 Ivanhoe will record the acquisition cost of the equipment as
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The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221, installation costs of $6,311, and special acquisition fees of $2,597, would be journalized with a debit to the asset account for Oa. $80,545 Ob. $89,453 Oc. $86,856 Od. $98,674
A company purchased for cash a machine with a list price of $85,000. The machine was shipped FOB shipping point at a cost of $6,500. Installation and test runs of the machine cost $4,500. The recorded acquisition cost of the machine is which amount? a. $96,000 b. $126,000 c. $85,000 d. $92,000
A machine with a cost of $141,000 and accumulated depreciation of $90,500 is sold for $61,000 cash. The amount that should be reported in the operating activities section reported under the direct method is: Multiple Choice $61,000. $10,500. $50,500.
Diego Company paid $186,000 cash to acquire a group of items consisting of land appraised at $53,000 and a building appraised at $159,00O. Allocate total cost to these two assets and prepare an entry to record the purchase. Complete this question by entering your answers General Total Cost Journal Prepare an entry to record the purchase. View transaction list Journal entry worksheet A Record costs of lump-sum purchase. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View genera Total Cost General Journ
Diego Company paid $186,000 cash to acquire a group of items consisting of land appraised at $53,000 and a building appraised at $159,000. Allocate total cost to these two assets and prepare an entry to record the purchase. Complete this question by entering your answers General Total Cost Journal Prepare an entry to record the purchase. View transaction list Journal entry worksheet A Record costs of lump-sum purchase. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general
Benson Company acquired a machine that involved the following expenditures and related factors: Gross invoice price $38,000 Sales tax 1,425 Cash discount taken 570 Freight 675 Assembly of machine 900 Installation of machine 1,350 Assorted spare parts for future use 2,700 Tuning and adjusting machine before use 450 The initial accounting cost of the machine should be: Select one: a. $33,870 b. $42,230 c. $30,030 d. $32,730 e. None of the above
The acquisition of a used machine with a purchase price of $43,163, requiring an overhaul costing $9,311, installation costs of $4,642, and special acquisition fees of $4,875, would be journalized with a debit to the asset account for Ca. $61,991 Ob. $80,819 c. $52,474 Od. $43,163
The acquisition of a new machine with a purchase price of $96,072, transportation costs of $7,638, installation costs of $6,963, and special acquisition fees of $2,105, would be journalized with a debit to the asset account for a.$96,072 b.$112,778 c.$105,140 d.$103,035
The following data relate to a firm's purchase of a machine used in the manufacture of its product: Invoice price Applicable sales tax Cash discount taken for prompt payment Freight paid Cost of insurance coverage on machine while in transit Installation costs Testing and adjusting costs Repair of damages to machine caused by the firm's employees750 Prepaid maintenance contract for first year of machine's use $30,000 2,000 400 260 125 3,000 475 300 Determine the acquisition cost of the machine.
Target purchased equipment. The following data relates to the purchase: Purchase cost Purchase cost Freight cost Costs of building a foundation and installation Salvage value Useful life O $35,400. Depreciation expense each year using the straight-line method will be O $29,400. ✔--- PURE LU HUGAUCUNE Raw YHANIN E SUARNENE wemo w 04 O $24.600. O $24.000. O $24.600. $150,000 $150.000 7,000 4 20,000 30.000 5.years:

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HB Corporation purchased equipment and incurred the following costs: Cash price Sales taxes $23,400 $2,100 Installation and testing $500 They will record the acquisition cost of the equipment as $