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...

See similar textbooks

Similar questions

VC purchased a machine for use in operations at a quoted price of $35,120. Full payment was cash of $8,000, plus a two-year non-interest-bearing note for $27,121. The market rate of interest for this note is 8 percent. VC should record the cost of the machine as (rounded to the nearest dollar): a. $32,950 b. $31,250 c. $23,250 d. $35,000 Please answer explaining in detail step by step without table and graph thankyou
9. ABC Company purchased a machine on December 1, 20X1 at an invoice price of 4, 500, 000 with terms 2/10, n/30. On December 10, 20X0, ABC paid the required amount for the machine. On December 1, 20X0, ABC paid 80, 000 for delivery of the machine and on December 31, 20X0, it paid 310, 000 for installation and testing of the machine. The machine was ready for use on January 1, 20X1. It was estimated that the machine would have a useful life of 5 years and a residual value of 800, 000. Engineering estimates indicated that the useful life in productive units was 200, 000. Units actually produced during the first 2 years were 30, 000 in 20X1 and 48, 000 in 20X2. ABC Company decided to use the output method of depreciation. What is the depreciation of the machine for 20X2?
Given step by step explanation general Accounting
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
ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65. Installation cost is P50,000. Decommissioning cost is P200,000. Expected useful life is 10 years and effective rate was 12% How much is the initial cost of the equipment? 2,550,000 2,539,395 2,614,395 2,750,000
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? $
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.)
A contractor purchased a Caterpillar D-13 dozer for$100,000 and owned it for five years. The annual cost for maintenance andrepair is provided in the Table. With annual interest rate at 7% and end-of-year disbursements, the uniform annual cost for maintenance and repair forthe dozer is most nearly: Do work by hand please.
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.)
Lynda Inc. purchased a piece of equipment for $15,000. Additional costs include transportation, $300; installation, $700; test run, $1,000; and insurance from the date that the equipment begins productive output, $1,200. What is the capitalized amount of the equipment? $17,000 $18,200 $16,000 $15,000
Kindly help me with general accounting question
Masukh

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SEE MORE TEXTBOOKS