The following data relate to a firm's purchase of a machine used in themanufacture of its product:Invoice priceApplicable sales taxCash discount taken for prompt paymentFreight paidCost of insurance coverage on machine while in transitInstallation costsTesting and adjusting costsRepair of damages to machine caused by the firm's employeesPrepaid maintenance contract for first year of machine's use$30,00o2,0004002601253,000475750300Determine the acquisition cost of the machine.个Acquisition Cost-

Calculate acquistion cost of the machine:

Answered: The following data relate to a firm's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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. $44,994The 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.
A financial analyst is analyzing the amortization of a product patent acquired by MAKETTIS.p.A., an Italian corporation. He gathers the following information about the patent:Acquisition cost €5,800,000Acquisition date 1 January 2009Patent expiration date 31 December 2015Total plant capacity of patented product 40,000 units per yearProduction of patented product in fi scal year ended 31 December 2009 20,000 unitsExpected production of patented product during life of the patent 175,000 unitsIf the analyst uses the units-of-production method, the amortization expense on the patent for fiscal year 2009 is closest to:A. €414,286.B. €662,857.C. €828,571.
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USE THE FOLLOWING INFORMATION: The following information regarding the exchange is available: Motown Corporation trades in a delivery vehicle for a new delivery vehicle. Assume the transaction has commercial substance. Cost of Motown's vehicle (old) $ 59,000 Accumulated Depreciation - Motown's vehicle (old) $ 2,200 Fair value Motown's vehicle (old) $ 39,000 List price of new vehicle (new) $ 61,000 Trade in allowance for Motown's vehicle (old) $ 38,000 26.) Compute the basis of the new vehicle to be recorded on Motown's books.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Acquisition of Equipment - A machine cost $1,200,000, has annual depreciation of $200,000, and has accumulated depreciation of $850,000 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $275,000, it is exchanged for a machine with a fair value of $1,350,000 and the proper amount of cash is paid. The exchange had commercial substance. Required: Prepare the entry to record the acquisition of the new equipment.
Situation II During 2022, Pearl SA constructed and manufactured certain assets and incurred the following borrowing costs in connecti with those activities. Warehouse constructed for Pearl's own use Special-order machine for sale to unrelated customer, produced according to customer's specifications Inventories routinely manufactured, produced on a repetitive basis Borrowing Costs Incurred The total amount of borrowing cost to be capitalized R$ R$28,200 8,460 7,520 All of these assets required an extended period of time for completion. Assuming the effect of borrowing cost capitalization is material, what is the total amount of borrowing cost to be capitalized?
Acquisition Cost of Long-Lived Asset The following data relate to a firm’s purchase of a machine used in the manufacture of its product: Invoice price $34,000 Applicable sales tax 2,000 Cash discount taken for prompt payment 400 Freight paid 260 Cost of insurance coverage on machine while in transit 125 Installation costs 2,000 Testing and adjusting costs 475 Repair of damages to machine caused by the firm’s employees 750 Prepaid maintenance contract for first year of machine’s use 400 Determine the acquisition cost of the machine.
On January 2, 2020, ABC Co. purchased a machine on credit terms 2/10, n/30. The invoice price was P40,000. Additional costs incurred in connection with the machine are as follows: Transportation-in: P1,200 Installation cost: P700 Testing costs prior to regular operation: P550 If the invoice is paid February 1, the acquisition cost of the machine must be a. P41,650 b. P41,100 c. P40,400 d. P39,200 e. answer not given
ABC Co. acquired a new machine. Details of the acquisition are as follows:Cash paid for machine including VAT of ₱60,000 560,000Royalty payment based on units produced 19,000Cost of transporting machine 15,000Cost of installation by expert fitter 40,000Labor of testing machine 20,000Materials used and damaged as a result of testing the machine 10,000Repair cost of new machine damaged in the process of installation 12,000Cost of training for personnel who will use the machine 25,000Cost of safety rails and platforms surrounding machine 50,000Cost of water device to keep machine cool 70,000Cost of adjustment to machine to make it operate more efficiently 75,000Estimated dismantling cost to be incurred as required by contract 67,000Cost of removing old machine 10,000Loss on premature retirement – old machine 120,000Gratuity paid to operator of old machine, who was laid off 20,000Required: Compute for the cost of the new machine.
Cullumber Company purchased equipment and these costs were incurred: Cash price $71000 Sales taxes 2700 Insurance during transit 800 Installation and testing 850 Total costs $75350 Cullumber will record the acquisition cost of the equipment as $74500. $73700. $75350. $71000.

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