M Company acquired a new machinery. The following data are available: List price of the machinery 1,400,000 Cash discount available but not taken on purchase 20,000 Freight paid on the new machine 40,000 Cost of removing the old machinery 15,000 Installation cost of the new machinery 50,000 Testing cost before the machinery was put into operation 30,000 Loss on premature retirement of the old machinery 5,000 Estimated cost of similar machinery 1,300,000 What amount should be capitalized as cost of the new machinery?
M Company acquired a new machinery. The following data are available: List price of the machinery 1,400,000 Cash discount available but not taken on purchase 20,000 Freight paid on the new machine 40,000 Cost of removing the old machinery 15,000 Installation cost of the new machinery 50,000 Testing cost before the machinery was put into operation 30,000 Loss on premature retirement of the old machinery 5,000 Estimated cost of similar machinery 1,300,000 What amount should be capitalized as cost of the new machinery?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 9EB: Ronson recently purchased a new boat to help ship product overseas. The following information is...
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M Company acquired a new machinery. The following data are available:
List price of the machinery
1,400,000
Cash discount available but not taken on purchase
20,000
Freight paid on the new machine
40,000
Cost of removing the old machinery
15,000
Installation cost of the new machinery
50,000
Testing cost before the machinery was put into operation
30,000
Loss on premature retirement of the old machinery
5,000
Estimated cost of similar machinery
1,300,000
What amount should be capitalized as cost of the new machinery?
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