(Learning Objectives 1, 4: Allocate costs to assets acquired in a lump-sumpurchase; dispose of a plant asset) Sugar Ridge Manufacturing bought three used machines ina $167,000 lump-sum purchase. An independent appraiser valued the machines as shown:Machine No. Appraised Value123$ 38,25073,10058,650What is each machine’s individual cost? Immediately after making this purchase, Sugar Ridgesold Machine No. 3 for its appraised value. What is the result of the sale? (Round decimals to threeplaces when calculating proportions, and use your computed percentages in all calculations.)
(Learning Objectives 1, 4: Allocate costs to assets acquired in a lump-sumpurchase; dispose of a plant asset) Sugar Ridge Manufacturing bought three used machines ina $167,000 lump-sum purchase. An independent appraiser valued the machines as shown:Machine No. Appraised Value123$ 38,25073,10058,650What is each machine’s individual cost? Immediately after making this purchase, Sugar Ridgesold Machine No. 3 for its appraised value. What is the result of the sale? (Round decimals to threeplaces when calculating proportions, and use your computed percentages in all calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
(Learning Objectives 1, 4: Allocate costs to assets acquired in a lump-sum
purchase; dispose of a plant asset) Sugar Ridge Manufacturing bought three used machines in
a $167,000 lump-sum purchase. An independent appraiser valued the machines as shown:
Machine No. Appraised Value
1
2
3
$ 38,250
73,100
58,650
What is each machine’s individual cost? Immediately after making this purchase, Sugar Ridge
sold Machine No. 3 for its appraised value. What is the result of the sale? (Round decimals to three
places when calculating proportions, and use your computed percentages in all calculations.)
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