On January 1, 2015 Hydra Co. purchased a new tractor to use to operate the company's dairy. The tractor cost $100,000. A front-end loader was purchased for the tractor a cost of $7,000. The cost to ship the tractor to Hydra Co. was $600 and the cost to install the loader was $800. The tractor comes with a 7-year warranty and the option to sell the tractor back to the manufacturer for $8,000 at the end of 7 years. Hydra expects to use the tractor for years and sell it for $15,000 at the end of 5 years. The company's year-end is December 31". A) Determine the total cost of the tractor reported as an asset on the balance sheet. Shot amounts included in the cost below (or no partial credit). $_ B) Determine the amounts and accounts reported on the income statement and the balance sheet on December 31, 2016 related to the tractor, given Hydra Co. uses the double declining balance method. Balance Sheet Income Statement

On January 1, 2015 Hydra Co. purchased a new tractor to use to operate the company's dairy. The tractor cost $100,000. A front-end loader was purchased for the tractor a cost of $7,000. The cost to ship the tractor to Hydra Co. was $600 and the cost to install the loader was $800. The tractor comes with a 7-year warranty and the option to sell the tractor back to the manufacturer for $8,000 at the end of 7 years. Hydra expects to use the tractor for years and sell it for $15,000 at the end of 5 years. The company's year-end is December 31". A) Determine the total cost of the tractor reported as an asset on the balance sheet. Shot amounts included in the cost below (or no partial credit). $_ B) Determine the amounts and accounts reported on the income statement and the balance sheet on December 31, 2016 related to the tractor, given Hydra Co. uses the double declining balance method. Balance Sheet Income Statement

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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