Kindly help me with accounting questions Martinez Company purchases new manufacturing equipment for $75,000. Additionalcosts include:⚫ Sales tax of $6,000⚫Installation costs of $2,500⚫ Employee training costs of $1,200.Annual maintenance contract of $800⚫ Initial testing and calibration of $700What should Martinez Company record as the cost of the new equipment?a) $82,500b) $84,200c) $85,000d) $85,800

Calculation of the Cost of the New Equipment to be recordedCost of the New Equipment to be recorded…

Answered: Martinez Company purchases new…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

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Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.
Ronson recently purchased a new boat to help ship product overseas. The following information is related to that purchase: purchase price $4,500,000 cost to bring boat to production facility $15,000 yearly insurance cost $12,000 pays annual maintenance cost of $22,000 received a 10% discount on sales price Determine the acquisition cost of the boat and record the journal entry needed.
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
Dumb Company constructed its own factory building. The company had a P1,000,000 two-year 12% loan specifically obtained to finance the asset construction. The construction began on January 1, 2021 and the building was completed on December 30, 2022. Expenditures on the building were made as follows: January 1, 2021 P800,000April 30, 2021 300,000November 1, 2021 600,000March 1, 2022 600,000September 30, 2022 400,000Dumb has the following outstanding loans from general borrowings: 10% note issued prior to construction of new building; term, 10 years 1,500,000 12% note issued prior to construction of new building; term, 15 years 2,500,000 13) How much is total initial cost of the building? 14) How much is the finance cost that should be recognized in profit or loss for the year 2022?
Wildhorse Co. purchased equipment on January 1 at a list price of $155000, with credit terms 3/10, n/30. Payment was made within the discount period. Wildhorse paid $6500 sales tax on the equipment, and paid installation charges of $2100. Prior to installation, Wildhorse paid $3500 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?
Steele Corp. purchases equipment for $21,000. Regarding the purchase, Steele recorded the following transactions: • Paid shipping of $1,200. • Paid installation fees of $2,400. • Pays annual maintenance cost of $260. • Received a 5% discount on $21,000 sales price. Determine the acquisition cost of the equipment.
7) Crass Spray Inc. (CSI) purchased equipment costing $60,000 on September 1, 2023. CSI made a $20,000 down payment and took out a loan for the remaining amount. Other cash expenditures related to this purchase included: Insurance during shipping: $500 Annual insurance policy: $2,400 Installation and testing costs: $600 Staff training costs on how to run the new equipment: $700 Required Determine the cost of the new equipment and record all required journal entries related to this equipment (you can ignore depreciation expense for the year).
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teele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: • Paid shipping of $1,000• Paid installation fees of $2,000• Pays annual maintenance cost of $200• Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.
Marburg Manufacturing Company purchased a machine on January 2, 2021. The invoice price of the machine was P4,000,000, and the vendor offered a 3 percent discount for payment within ten days. The following additional costs were incurred in connection with the machine: Transportation-in 120,000 Installation cost 70,000 Testing costs prior to regular operation 55,000 If the invoice is paid beyond the discount period, Marburg should record the acquisition cost of the machine at what amount?
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