Santa Rosa recentiy purchased a new boat to help ship product overseas. The following information is related to that purchase:Purchase price $4,100,000Cost to bring boat to production facility $29,000Yearly insurance cost $29,000Annual maintenance cost of $40,000Received 6% discount on sales priceA. Determine the acquisition cost of the boat.$4,375,000 XFeedbackCheck My WorkRemember that any costs incurred in the process of acquiring an asset and making it ready for its intended use can be capitalized as part of the value of theasset. Any other costs that maintain the asset during its use are standard expenses (not capitalized).B. Record the journal entry needed. If an amount box does not require an entry, leave it blank.Вoat4,375,000XCash4,375,000 X

Name: Santa Rosa recentiy purchased a new boat to help ship product oversea
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Description: Santa Rosa recentiy purchased a new boat to help ship product overseas. The following information is related to that purchase:Purchase price $4,100,000Cost to bring boat to production facility $29,000Yearly insurance cost $29,000Annual maintenance c

Costs that are incurred to put the boat into a capacity to use are capitalized. Other costs incurred…

Business

Accounting

• Purchase price $4,100,000 • Cost to bring boat to production facility $29,000 • Yearly insurance cost $29,000 • Annual maintenance cost of $40,000 • Received 6% discount on sales price A. Determine the acquisition cost of the boat. 375. 000

• Purchase price $4,100,000 • Cost to bring boat to production facility $29,000 • Yearly insurance cost $29,000 • Annual maintenance cost of $40,000 • Received 6% discount on sales price A. Determine the acquisition cost of the boat. 375. 000

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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