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.
What is the correct option? General Accounting question
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
A company purchased a special purpose machine on August 1st of the previous year. It was installed and ready to run on January 1st of the current year. The following costs were incurred in the purchase and installation of the machine: Invoice price $1,200,000 Freight costs 6,000 Installation costs 64,000 Electrical and power connections 32,000 Repairs to correct damage during uncrating 12,000 Costs to adjust machine to appropriate specifications 56,000 Costs of spare parts for future use 108,000 Sales tax 70,500 Cost of…
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Josiah Co acquired a new machine. Details of the acquisition are as follows: Purchase price including VAT 1,568,000 Cost of water device to keep machine cool 8,000 Cost of safety rail and platform surrounding machine 12,000 Installation cost, including site preparation and assembling 20,000 Fees paid to consultants for advice on acquisition of the machinery 13,000 Present value of the estimated dismantling cost of the new machine 10,000 Repair cost of the machine damaged while in the process of installation 5,000 Loss on premature retirement-old machine 18,000 Other nonrefundable sales tax 13,000 Cost of training for personnel who will use the machine 25,000 Cost of removing old machine 10,000 Determine the cost of the Machinery
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A company purchased a 10-ton draw press at a cost of $181,000 with terms of 215/,n45./215,n45. Payment was made within the discount period. Shipping costs were $4,200, which included $230 for insurance in transit. Installation costs totaled $11,300, which included $4,800 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is:
Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $21,600. The equipment has an estimated residual value of $1,200. The equipment is expected to process 256,000 payments over its three-year useful life. Per year, expected payment transactions are 61,440, year 1; 140,800, year 2; and 53,760, year 3. Required: Complete a depreciation schedule for each of the alternative methods. Straight-line. Units-of-production. Double-declining-balance.
Wilson Machine Tools, Inc., a manufacturer of fabricated metal products, is considering the purchase of a high-tech computer-controlled milling machine at a cost of $95,000. The cost of installing the machine, preparing the site, wiring, and rearranging other equipment is expected to be $15,000. This installation cost will be added to the cost of the machine in order to determine the total cost basis for depreciation. Special jigs and tool die for a particular product will also be required at a cost of $10,000. The milling machine is expected to last 10 years, but the jigs and dies for only five years. Therefore, another set of jigs and dies has to be purchased at the end of five years. The milling machine will have a $10,000 salvage value at the end of its life, and the special jigs and dies are worth only$300 as scrap metal at any time in their lives. The machine is classified as a seven-year MACRS property, and the special jigs and dies are classified as a three-year MACRS property.…
A company that manufactures pulse Doppler insertion flow meters uses the Straight Line method for book depreciation purposes. Newly acquired equipment has a first cost of $160,000 with a 3-year life and a $19,000 salvage value. Determine the depreciation charge and a book value for year 2. The depreciation charge is $ The book value for year 2 is determined to be $
Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $29,700. The equipment has an estimated residual value of $1,200. The equipment is expected to process 257,000 payments over its three-year useful life. Per year, expected payment transactions are 61,680, year 1; 141,350, year 2; and 53,970, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete a depreciation schedule for the straight-line method. (Do not round intermediate calculations.) Income Statement Depreciation Expense Year acquisition 1 2 3 Cost Balance Sheet Accumulated Depreciation Book Value

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