Required Determine the capitalized cost of the asset.
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 7P: Calculate the following: The first year of depreciation on a residential rental building costing...
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![Invoice price
|Shipping cost
Installation cost
Cost to tear down old swing
Insurance to cover 2019 and 2020
Necessary repair during installation
261,100
1,100
6,000
200
4,000
2,000
Required
1 Determine the capitalized cost of the asset.
Туре of Cost
$ Value of Cost
Page 1
2 Determine the proper treatment for the following expenditures.
Key
Capitalize
Expense
Treatment
Oil the gears of the swing each month, $25
Installed new swing seats in year 2, $22,000
Replaced the motor in year 3, $32,000
Repainted the posts in year 3, $600
Spray the swing seats with sanitizer each week, $45
Repaired broken exterior light on two of the swings, $175](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfebf7cf-10ce-4728-8527-e019d6790b18%2F4124fb4d-fac4-40a1-8588-1daf890a67c2%2F7rm9e5b_processed.png&w=3840&q=75)
Transcribed Image Text:Invoice price
|Shipping cost
Installation cost
Cost to tear down old swing
Insurance to cover 2019 and 2020
Necessary repair during installation
261,100
1,100
6,000
200
4,000
2,000
Required
1 Determine the capitalized cost of the asset.
Туре of Cost
$ Value of Cost
Page 1
2 Determine the proper treatment for the following expenditures.
Key
Capitalize
Expense
Treatment
Oil the gears of the swing each month, $25
Installed new swing seats in year 2, $22,000
Replaced the motor in year 3, $32,000
Repainted the posts in year 3, $600
Spray the swing seats with sanitizer each week, $45
Repaired broken exterior light on two of the swings, $175
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