Hi expart Provide solution these accounting question Swain, Inc., acquired a machine that involved the following expenditures and related factors:Gross invoice price: $28,500Sales tax: $1,425Cash discount taken: $570Freight: $675Assembly of machine: $900Installation of machine: $1,350Assorted spare parts for future use: $2,700Tuning and adjusting machine before use: $450The initial accounting cost of the machine should be:A. $33,870B. $32,280C. $30,030D. $32,730E. None of the above

Step 1: Define Measuring AssetsA machine is considered a non-current asset when the company owns and…

Answered: Swain, Inc., acquired a machine that…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
Peak, Inc., acquired a machine that involved the following expenditures and related factors: Gross invoice price Sales tax Cash discount taken Freight Assembly of machine Installation of machine Repair of machine damage caused during installation Tuning and adjusting machine before use A) $68,352 The initial accounting cost of the machine should be: B) $63,232 C) $56,032 $54,400 3,520 1,088 1,920 1,600 2,400 5,120 D) $64,032 1,280
Hello! I need help with the following accounting question regarding the calculation of the amount of depreciation expenses calculated under the assumtpions attatched below. Thank you in advance!
Mad Hatter Enterprises purchased new equipment for $362,000, terms f.o.b. shipping point. Other costs connected with the purchase were as follows: State sales tax Freight costs Insurance while in transit Insurance after equipment placed in service Installation costs Insurance for the first year of operations Testing $28,900 5, 300 770 1,170 1,850 2, 250 670 Required: Determine the capitalized cost of the equipment. Cost of equipment
Nelson Company purchased equipment and incurred the following costs: Cash price = $55,000 Sales taxes = $4,400 Insurance during transit = $400 Site preparation, installation, and testing= $2,300What amount should be used as the cost basis of the equipment?
Benson Company acquired a machine that involved the following expenditures and related factors: Gross invoice price $38,000 Sales tax 1,425 Cash discount taken 570 Freight 675 Assembly of machine 900 Installation of machine 1,350 Assorted spare parts for future use 2,700 Tuning and adjusting machine before use 450 The initial accounting cost of the machine should be: Select one: a. $33,870 b. $42,230 c. $30,030 d. $32,730 e. None of the above
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
Phoenix Co. acquired a large piece of specialized machinery used in its manufacturing process. The following costs were incurred in connection with the aquisition: Finder's fee $2,000 List price $230,000 Transportation fee $4,000 Speeding ticket during transportation $65 Installation fee $2,500 Cost to repair a door damaged during installation $1,200 Required: Which of the costs incurred by Phoenix Co. should be capitalized to the machinery account?
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.)
What is the depreciation base of the machine?
Determine the total recorded cost of the new machine on these general accounting question
Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet

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