What is the proper capitalized cost of the printing press? Riverdale Corp purchased a printing press for $42,000. Related costs included:⚫ Delivery charges: $1,800⚫Testing and calibration: $1,200.One-year warranty: $900⚫ Site preparation: $2,500What is the proper capitalized cost of the printing press?a. $42,000b. $47,500c. $48,400d. $45,500

Step 1: Definition of Capitalized CostThe capitalized cost is the total amount incurred to acquire…

Answered: Riverdale Corp purchased a printing…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5Q: For each of the following transactions, state whether the cost would be capitalized (C) or recorded...

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Answer? ? General Accounting
Falther Inc. acquired a new processing machine: Invoice cost P1,800,000 Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. 1. What amount of should be recorded as cost of the new machine?
Kemp Inc. acquired a new processing machine: P1,800,000 Invoice cost Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. a. P1,800,000 b. P1,840,000 c. P1,870,000 d. P1,780,000
Thompson table company purchased assembly machine. The invoice price of the machine was $3,000 plus freight of $150. Terms of the purchase granted a discount of $60 if Thompson paid in cash within 10 days, but the firm was short of cash and decided to wait until the bill was due and pay the full amount. The new machine recorded at a cost of...... a. $3,000 b. $3,150 c. $3,090 d.$2,940
A copy machine was purchased for $28,000. It is estimated that the machine will have a useful life of 4 years and a residual value of $4,000. It is estimated that the machine will make 2,000,000 copies. Using the units-of-activity method to depreciate the copy machine, how much will be depreciated if during the first year 550,000 copies were made? a. $24,000 Ob. $7,700 Oc. $6,600 d. $6,000
On 1 January 20X7, Z Co purchased an item of plant. The invoice showed: $ Cost of plant 48,000 Delivery to factory 400 One year warranty covering breakdown 800 49,200 Modifications to the factory building costing $2,200 were necessary to enable the plant to be installed. What amount should be capitalised for the plant in Z Co's accounting records? $
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Orion Flour Mills purchased a new machine and made the following expenditures: $55,000 5,000 Purchase price Sales tax Shipment of machine 800 Insurance on the machine for the first 500 year Installation of machine 1,600 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
An assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The conveyor units had a first cost of $30,000 with a$9000 salvage value. The annual operating cost allocated to the conveyor is $7000 per year. The book value at the end of year 2 is closest to:a. $6,480b. $10,800c. $12,400d. $18,000
Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $ 66,000 Sales tax 5,550 Shipment of machine 910 Insurance on the machine for the first year 610 Installation of machine 1,820 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
1. A contractor imported a bulldozer for his job, paying 250,000 to the manufacturer. Freight and insurance charges amounted to 18,000; customs broker's fee and arrastre services, 8,500; taxes, permits and other expenses, 25,000. If the contractor estimates the life of the bulldozer to be 10 years with salvage value of 20,000, determine the book value at the end of 6 years, using the: a. SLM b. Sinking @ i=18% c. Matheson d. SYD method
ABC Ltd. Incurred the following costs related to the purchase of a machine: $10,500 Invoice price Insurance during transit Pouring cement slab on which the machine must be mounted Interest expense on debt used to buy the asset Shipping costs Annual service contract cost ö $14,600 $12,100 What is the amount capitalized to the balance sheet for the machine? $11,800 200 $13,600 1,000 2,500 100 300

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