Sandwich Express incurred the following costs related to its purchase of a bread machine.Cost of the equipment $ 20,000Sales tax (8%) 1,600Shipping 2,200Installation 1,400Total costs $ 25,200At what amount should Sandwich Express record the bread machine?a. $20,000.b. $21,600.c. $23,800. d. $25,200.

Q: How much is the cost of th

A: To calculate the cost of acquisition or self construction, IAS 16 should be referred.

Q: Cullumber Ltd. received a $275000 grant from the federal government to help buy equipment as an…

A: There are two types of grants on can receive from the governmentMonetary grant andNon monetary…

Q: Garcia Co. owns equipment that costs $77,300, with accumulated depreciation of $42,800. Garcia sells…

A: Net book value of the equipment = Cost - accumulated depreciation = $77,300 - $42,800 = $34,500…

Q: Kegler Bowling buys scorekeeping equipment with an invoice cost of $180,000. The electrical work…

A: All the costs incurred for making the asset ready for use are capitalized costs. All the costs that…

Q: ABC Company purchases a truck by paying $5000 cash and surrendering a piece of equipment with a book…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Keisha Co. incurred the following expenditures on internally developed intangible assets Internally…

A: Intangible assets are those assets that are identifiable, having economic value but do not have a…

Q: FrostFrost Enterprises buys a warehouse for $ 530 comma 000$530,000 to use for its East Coast…

A: Historical Cost: Historical cost principle is also known as original cost. As per historical cost…

Q: A truck costs $82,000 when new and has accumulated depreciation of $70,000. Suppose Frank Towing…

A: First we need to calculate the current value of old truck.Then it will be added to cash payment  to…

Q: AI Maha Company purchased equipment and had the following costs: Repairing of roof RO 14,750…

A: Cost of acquisition is the cost that an organization recognizes and records the value of an asset in…

Q: Bovine Ltd. has the following assets in a CGU: Carrying Value (thousands)Equipment $ 600 Building…

A: Introduction: Impairment loss: The amount by which the carrying amount of an asset or…

Q: purchase. An independent appraiser valued the machines as shown below: Clintwood manufacturing…

A: Total Appraised Value of the 3 Machines = KD 84,000 + KD 127,200 + KD 28,800…

Q: Anoy Inc., exchanged a trucj that cost $30,000 (now 50% depreciated) for a similar truck with an…

A: Book value of old truck=Cost-Depreciation=$30,000-$30,000×50%=$15,000

Q: S Cala Manufacturing purchases land for $277,000 as part of its plans to build a new plant. The…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Sheffield Corp icurs these exoenditures in purchasing a truck :cash price $ 53000, acvident…

A: Cost of asset is the amount paid for an asset and for expenses incurred in putting the asset in use.…

Q: Fillon operates manufacturing facilities in States A and B. Fillon has nexus with both states;…

A: The taxable income in both the states would be based on the apportionment factors of total income.

Q: A truck costs $105,000 when new and has accumulated depreciation of $100,000. Suppose Jackson Towing…

A: Cost of truck = $105,000Accumulated Depreciation = $100,000Cash Paid = $46,000Market Value of New…

Q: ABC Co purchases a Bus at a price of OMR 25,000 and incurred other expenditures such as…

A: Cost of bus to be capitalised = Purchase price + Non refundable taxes + paitning of truck

Q: The capitalized cost of the equipment was

A: The capitalised cost of equipment is all the costs incurred by the company up to the installation of…

Q: Page 9 & page 12! Goodman Company acquired a truck from Harmes Company in exchange for a machine.…

A: Journal entry is a process of initially recording and classifying business transactions into books…

Q: Dandy Candy Company sold its loorice division resulting in a loss of S80,000. Assuming a tax rate of…

A: The loss on disposal of assets is reported in Income statement at pre-tax figure.

Q: Concord Corporation incurs these expenditures in purchasing a truck: cash price $54,000, accident…

A: As per IFRS/IAS 16 Property, plant and Equipment, the cost of property, plant and equipment consists…

Q: For what amount will LAR record the range?

A: Recording the purchase of an asset is an important ledger entry as it show cases in the balance…

Q: Rock Properties recently purchased a building that generates Gross Rental Income of $190,000 per…

A: The capitalization rate is a financial measure that helps to evaluate capital assets based on their…

Q: AI Maha Company purchased equipment and had the following costs: Repairing of roof RO 14,750…

A: Particulars Amount Cash price RO 25,250 Insurance during transit 570 Sales tax 2,870…

Q: Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Company purchased a…

A: Capitalization refers to the amount that is incurred in the long-term debt, stock, and retained…

Q: Cullumber Company purchased equipment and these costs were incurred: Cash price $71000 Sales…

A: The cost of equipment which is an asset includes all the expenditure necessary to bring that asset…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.