Required information PB9-1 (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, Feliz Industries bought a shed, a machine, and a trailer. The shed initially cost $21,200 but had to be renovated at a cost of $720. The shed was expected to last 7 years, with a residual value of $1,900. Repairs costing $540 were incurred at the end of the first year of use. The machine cost $11,700, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2. The trailer cost $12,200 and was expected to last 4 years, with a residual value of $2,000. PB9-1 (Algo) Part 1 Required: . Compute the amount to be capitalized for the shed. Total cost $ 0
Required information PB9-1 (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, Feliz Industries bought a shed, a machine, and a trailer. The shed initially cost $21,200 but had to be renovated at a cost of $720. The shed was expected to last 7 years, with a residual value of $1,900. Repairs costing $540 were incurred at the end of the first year of use. The machine cost $11,700, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2. The trailer cost $12,200 and was expected to last 4 years, with a residual value of $2,000. PB9-1 (Algo) Part 1 Required: . Compute the amount to be capitalized for the shed. Total cost $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Required information
PB9-1 (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, Feliz Industries bought a shed, a machine, and a trailer.
The shed initially cost $21,200 but had to be renovated at a cost of $720. The shed was expected to last 7
years, with a residual value of $1,900. Repairs costing $540 were incurred at the end of the first year of use.
The machine cost $11,700, and is estimated to have a total life of 40,000 hours and residual value of $900.
The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2.
The trailer cost $12,200 and was expected to last 4 years, with a residual value of $2,000.
PB9-1 (Algo) Part 1
Required:
1. Compute the amount to be capitalized for the shed.
Total cost
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1166a12-d361-436f-8e85-6703d25cfbd7%2Fcbaf743e-df8d-4285-a787-127641b5b045%2F8okzmop_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
PB9-1 (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, Feliz Industries bought a shed, a machine, and a trailer.
The shed initially cost $21,200 but had to be renovated at a cost of $720. The shed was expected to last 7
years, with a residual value of $1,900. Repairs costing $540 were incurred at the end of the first year of use.
The machine cost $11,700, and is estimated to have a total life of 40,000 hours and residual value of $900.
The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2.
The trailer cost $12,200 and was expected to last 4 years, with a residual value of $2,000.
PB9-1 (Algo) Part 1
Required:
1. Compute the amount to be capitalized for the shed.
Total cost
$
0
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