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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
a. 1,400,000
b. 1,200,000
c. 1,500,000
d.1,410,000
Transcribed Image Text:20Acctg%202020%20Vol%201%20Conrado'%201%2
Problem 26-21 (IAA)
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
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