Queer Company provided the following charges to the repair and maintenance account: Service contract on office equipment Initial design fee for proposed extension of office building New condenser for central air conditioning unit Purchase of executive chairs and desks Purchase of storm windows and screens and their installation on all office windows Sealing of roof leaks in production area Replacement of door to production area Installation of automatic door-opening system Overhead crane for assembly department to speed up production Replacement of broken gear on machine 100,000 150,000 10,000 200,000 500,000 80,000 50,000 200,000 350,000 60,000 What total amount of expenditures should be capitalized? a. 1,400,000 b. 1,200,000

Queer Company provided the following charges to the repair and maintenance account: Service contract on office equipment Initial design fee for proposed extension of office building New condenser for central air conditioning unit Purchase of executive chairs and desks Purchase of storm windows and screens and their installation on all office windows Sealing of roof leaks in production area Replacement of door to production area Installation of automatic door-opening system Overhead crane for assembly department to speed up production Replacement of broken gear on machine 100,000 150,000 10,000 200,000 500,000 80,000 50,000 200,000 350,000 60,000 What total amount of expenditures should be capitalized? a. 1,400,000 b. 1,200,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.6.1P

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