Trinkle Company, Incorporated made several purchases of long-term assets in Year 1. The details of each purchase are presentedhere.New Office Equipment1. List price: $38,100; terms: 2/10 n/30; paid within discount period.2. Transportation-In: $720.3. Installation: $510.4. Cost to repair damage during unloading: $419.5. Routine maintenance cost after eight months: $280.Basket Purchase of Copler, Computer, and Scanner for $51,100 with Fair Market Values1. Copler, $27,104.2. Computer, $10,472.3. Scanner, $24,024.Land for New Warehouse with an Old Building Torn Down1. Purchase price, $78,700.2. Demolition of building, $4,920.3. Lumber sold from old building, $1,920.4. Grading In preparation for new building, $8,900.5. Construction of new building, $271,000.RequiredIn each of these cases, determine the amount of cost to be capitalized in the asset accounts.AssetOffice equipmentBasket purchase:CopierComputerScannerTotal cost to be capitalizedLand and building:Cost of landConstruction costsTotal cost to be capitalizedAllocated CostsTotal

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Answered: Trinkle Company, Incorporated made…

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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