Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase: Purchase price $840,000 Cost to bring boat to production facility $25,000 Yearly insurance cost $3,600 Annual maintenance cost of $12,000 Cost to make the boat handicap accessible $9,000 Received 8% discount on sales price Determine the acquisition cost of the boat, and record the journal entry needed.
Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase: Purchase price $840,000 Cost to bring boat to production facility $25,000 Yearly insurance cost $3,600 Annual maintenance cost of $12,000 Cost to make the boat handicap accessible $9,000 Received 8% discount on sales price Determine the acquisition cost of the boat, and record the journal entry needed.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 9EA: Santa Rosa recently purchased a new boat to help ship product overseas. The following information is...
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![Santa Rosa recently purchased a new boat to help ship product overseas. The
following information is related to that purchase:
Purchase price $840,000
Cost to bring boat to production facility $25,000
Yearly insurance cost $3,600
·Annual maintenance cost of $12,000
Cost to make the boat handicap accessible $9,000
Received 8% discount on sales price
Determine the acquisition cost of the boat, and record the journal entry needed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F16b65624-e055-4de8-b88e-ba284c6966b5%2F22dea77f-53e1-4926-ba9f-955d67936410%2Fwclmjy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Santa Rosa recently purchased a new boat to help ship product overseas. The
following information is related to that purchase:
Purchase price $840,000
Cost to bring boat to production facility $25,000
Yearly insurance cost $3,600
·Annual maintenance cost of $12,000
Cost to make the boat handicap accessible $9,000
Received 8% discount on sales price
Determine the acquisition cost of the boat, and record the journal entry needed.
Expert Solution
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Step 1 Introduction
Acquisition costs include the costs related to purchase an assets and then any further costs incurred for installation or to make it operating.
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