**Transcription for Educational Website:**---**Title: Journalizing the Acquisition of a New Machine**The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221, installation costs of $6,311, and special acquisition fees of $2,597, would be journalized with a debit to the asset account for:- a. $90,545- b. $89,453- c. $86,856- d. $98,674---*Explanation:*When acquiring a new machine for a business, various costs must be taken into account to determine the total cost of the asset. The costs typically include the purchase price, transportation costs, installation costs, and any special acquisition fees. All these costs are added together and journalized as a debit to the asset account.For the problem given:1. **Purchase Price:** $80,5452. **Transportation Costs:** $9,2213. **Installation Costs:** $6,3114. **Special Acquisition Fees:** $2,597**Total Cost:** $80,545 + $9,221 + $6,311 + $2,597 = $98,674Thus, the correct journal entry to the asset account would be with a total debit of $98,674, which corresponds to option d. $98,674.

Asset is the resource owned by an entity which are held for generating future revenues.

The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221, installation costs of $6,311, and special acquisition fees of $2,597, would be journalized with a debit to the asset account for Oa. $80,545 Ob. $89,453 Oc. $86,856 Od. $98,674

The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221, installation costs of $6,311, and special acquisition fees of $2,597, would be journalized with a debit to the asset account for Oa. $80,545 Ob. $89,453 Oc. $86,856 Od. $98,674

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 29P

See similar textbooks

Related questions

Q: A fixed asset with a cost of $25,556 and accumulated depreciation of $23,000 is traded for a similar…

A: Solution: Cost at which new equipment will be recorded = Fair market value of the new equipment =…

Q: A fixed asset with a cost of $29,006 and accumulated depreciation of $26,105 is traded for a similar…

A: Given that: Cost of fixed asset = $29006 Accumulated Depreciation = $26105 Fair market price of new…

Q: The acquisition of a used machine with a purchase price of $43,163, requiring an overhaul costing…

A: Ans. All the acquisition costs that are incurred to bring the asset to it's usable condition are…

Q: ABC Company purchased an asset which has the following information: 1. List price of $60000…

A: The original cost of the asset includes costs which are responsible for putting it in a working…

Q: A fixed asset with a cost of $28,202 and accumulated depreciation of $25,382 is traded for a similar…

A: The cost basis of the new asset is the cost of assets for tax purposes It can be calculated in the…

Q: The acquisition of a new machine with a purchase price of $82,058, transportation costs of $7,947,…

A: The cost of the machine includes all the expenses which are incurred to make the asset ready to use.…

Q: Prepare journal entry on January 1, 2027 to record the return of the machinery to the lessor. Assume…

A: The lease can be obtained by a company for those assets for which a company does not want to be in a…

Q: The components of the cost of a major item of equipment are given below. GHS Purchase price 780,000…

A: generally, costs that are incurred till the asset gets ready to use will be capitalized to the cost…

Q: The information below was extracted from the books of Let Your Light Shine Enterprise: Non-current…

A: Working- Machine A Date of Acquisition 3/1/2015 Cost 30000 Depreciation Rate 20%…

Q: Equipment with an estimated market value of $29,149 is offered for sale at $45,171. The equipment is…

A: Note: When any assets is purchased then that assets should always be recorded in the books at…

Q: A fixed asset with a cost of $29,079 and accumulated depreciation of $26,171 is traded for a similar…

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

Q: Calculate the total cost, total depreciation, and annual depreciation (in $) for the following…

A: Depreciation refers to an amount that diminishes teh value of an asset due to obsolescence, wear…

Q: formation ing information applies to the questions displayed below.] onstruction makes a lump-sum…

A: Straight line method of depreciation is a concept under which an asset is depreciated at a constant…

Q: The acquisition of a used machine with a purchase price of $44,994, requiring an overhaul costing…

A: Debit to the asset account implies that the business possesses more (for example builds the…

Q: The acquisition of a new machine with a purchase price of $96,072, transportation costs of $7,638,…

A: Machinery is a non-current fixed asset used by the company on its factory floor in the manufacturing…

Q: es Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash…

A: Depreciation is the decrement in the value of tangible assets by the wear and tear during the…

Q: A fixed asset with a cost of $32,265 and accumulated depreciation of $29,039 is traded for a similar…

A: Fixed assets refer to the assets with a considerably longer useful life as compared to current…

Q: A new machine with a purchase price of $90,021, with transportation costs of $9,593, installation…

A: As per IAS 16 (Property plant and, equipment), the cost of an asset compromises its purchase price,…

Q: Hilarious Company provided the following data pertaining to machinery on the date of revaluation:…

A: 1) Revaluation increase = 7,200,000 - (4,500,000 - 900,000) = 3,600,000 2) Carrying amount =…

Q: What is the investment carrying amount at December 31, 2021? A. P1,920,000 B. P1,790,000 C.…

A: Companies invest in other companies through equity investment to have control the company and effect…

Q: A machine with a cost of $141,000 and accumulated depreciation of $90,500 is sold for $61,000 cash.…

A: Cash flow statement provided information about the cash inflows and cash outflows of the company.…

Q: A fixed asset with a cost of $24,737 and accumulated depreciation of $22,263 is traded for a similar…

A: The new equipment with commercial substance should be recorded at fair market value.

Q: Find the book value for the asset shown in the accompanying table, assuming that MACRS depresiing is…

A: The asset book value needs to be calculated at the end of 3 years. The cumulative depreciation rates…

Q: The following are probable salvage value estimates for an asset: $4,500 with a probability of 33%,…

A: The expected salvage value is calculated as the sum of the products of each possible salvage value…

Q: Calculate the total cost, total depreciation, and annual depreciation (in $) for the following…

A: Total cost = Cost + Shipping charges + Setup chargesTotal depreciation = Total cost - salvage…

Q: A $48,000 asset was purchased and classified as a Class 10 asset for CCA purposes. If the CCA rate…

A: UCC is the undepreciated capital cost which is the capital balance after series of depreciation. CCA…

Q: 6. Interest charges of $2000 Requirement: required: A. Which of the above payments must be…

A: The cost of the asset includes all those cost which makes the asset relevant for it's intended use.…

Q: Prepare the journal entry to record TWO of the following scenarios. Please be sure to identify which…

A: (a) Accumulated depreciation $20,000 Loss on asset disposal $5,000 Machine #1…

Q: Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $52,500 and…

A: In a situation where commercial substance exists, any gain or loss on exchange of assets shall be…

Q: The components of the cost of a major item of equipment are given below. GHS Purchaseprice…

A: IAS 16 provides that initial cost of non-current assets must include all other cost over purchase…

Q: A used machine with a purchase price of $39,664, requiring an overhaul costing $9,823, installation…

A: Solution- Calculation of…

Q: Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $84,000 and…

A: In case of lack of commercial substance , the gain is recognized in proportional manner and total…

Q: A non-current asset (cost $10,000, depreciation $7,500) is given in part exchange for a new asset…

A: Given the following information: Cost of non-current asset: $10,000 Depreciation: $7,500 New asset…

Q: Acquisition Cost of Long-Lived Asset The following data relate to a firm's purchase of a machine…

A: ACQUISITION COSTAquisition Cost are those costs which occur when a buyer purchases an asset for the…

Q: Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $52,500 and…

A: Fixed assets: These are the assets which were used in the business for more than one year. These…

Question

**Transcription for Educational Website:**

---

**Title: Journalizing the Acquisition of a New Machine**

The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221, installation costs of $6,311, and special acquisition fees of $2,597, would be journalized with a debit to the asset account for:

- a. $90,545
- b. $89,453
- c. $86,856
- d. $98,674

---

*Explanation:*

When acquiring a new machine for a business, various costs must be taken into account to determine the total cost of the asset. The costs typically include the purchase price, transportation costs, installation costs, and any special acquisition fees. All these costs are added together and journalized as a debit to the asset account.

For the problem given:

1. **Purchase Price:** $80,545
2. **Transportation Costs:** $9,221
3. **Installation Costs:** $6,311
4. **Special Acquisition Fees:** $2,597

**Total Cost:** $80,545 + $9,221 + $6,311 + $2,597 = $98,674

Thus, the correct journal entry to the asset account would be with a total debit of $98,674, which corresponds to option d. $98,674.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The acquisition of a used machine with a purchase price of $44,994, requiring an overhaul costing $9,118, installation costs of $4,677, and special acquisition fees of $31,965 would be journalized with a debit to the asset account for Oa. $54,112 0b. 590.754 O c. $136,514 O d. $44,994
The acquisition of a used machine with a purchase price of $43,163, requiring an overhaul costing $9,311, installation costs of $4,642, and special acquisition fees of $4,875, would be journalized with a debit to the asset account for Ca. $61,991 Ob. $80,819 c. $52,474 Od. $43,163
How can i solve task 20 question 1?
Please answer, The questions are under IAS 38 Intangible Assets
Thank you for all the help!
Complete a depreciation schedule to enter fixed-asset data in an Excel table, calculate depreciation expense, and analyze the table data. (Chapter 6) Use this information, provided as of 1/31/2019, to create the depreciation schedule as of 1/31/2020 using appropriate headers and a table in which all pertinent information is displayed: Date of Salvage Useful Life Accumulated Value $2,000 $1.300 $900 Fixed Asset Cost Acquisition $32,000 $11.300 $6.900 (years) Depreciation $15,000 $2.000 $4.000 Automobile 1/31/2014 10 Store Fixtures 1/31/2018 Office Equipment 1/31/2015 6 CraftWorld uses the straight-line method of depreciation. In addition to the fixed assets shown, the company acquired new furniture on 1/31/2019. It cost $3,100, has an estimated four-year useful life, and an estimated salvage value of $300. Create the table so each of the six categories shown above is displayed in a separate column (note that some figures may appear different in your 1/31/2020 table than in the 1/31/2019…
A new machine with a purchase price of $83,068.00, with transportation costs of $8,140.00, installation costs of $5,906.00, and special acquisition fees of $2,555.00. Calculate a cost basis. Select the correct answer. $83,068.00 $99,669.00 $91,529.00 $88,974.00
attached in ss thanks for help 530983 6839068 368930683
Sub.... Account
A new machine with a purchase price of $90,021, with transportation costs of $9,593, installation costs of $6,472, and special acquisition fees of $2,612, would have a cost basis of a. $108,698 b. $96,493 Oc. $90,021 d. $99,105
Using Excel to prepare depreciation schedules Download an Excel template for this problem online in MyAccountingLab or at http://www.pearsonhighered.corri/Horngren. The Fraser River Corporation has purchased a new piece of factory equipment on January 1, 2018, and wishes to compare three depreciation methods, straight-line, double-declining-balance, and units-of-production. The equipment costs $400,000 and has an estimated useful life of four years, or 8,000 hours. At the end of four years, the equipment is estimated to have a residual value of $20,000. Requirements Use Excel to prepare depreciation schedules for straight-line, double-declining-balance, and units-of-production methods. Use cell references from the Data table. Prepare a second depreciation schedule for double-declining-balance method, using the Excel function DDB. The DDB function cannot be used in the last year of the asset's useful life. At December 31, 2018, Fraser River is trying to determine if it should sell the…
The acquisition of a used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000 would be journalized with a debit to the asset account for?