PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below] At the beginning of the year, Cruz & Turner Corporation bought three used machines. The machines Immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Coat of the asset Installation costs Renovation costs prior to use Repairs after production began PA9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for Machine A. Total cost $10,700 970 1,110 850 $

FINANCIAL ACCOUNTING
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PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods
[LO 9-2, LO 9-3]
[The following information applies to the questions displayed below.]
At the beginning of the year, Cruz & Turner Corporation bought three used machines. The machines immediately were
overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in
the accounts. Details for Machine A are provided below.
Coat of the asset.
Installation costs
Renovation costs prior to use
Repairs after production began.
PA9-1 (Algo) Part 1
Required:
1. Compute the amount to be capitalized for Machine A.
Total cost
$
$10,700
970
1,110
850
0
Transcribed Image Text:PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Cruz & Turner Corporation bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Coat of the asset. Installation costs Renovation costs prior to use Repairs after production began. PA9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for Machine A. Total cost $ $10,700 970 1,110 850 0
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