XYZ Corp. acquired a new equipment. It had the following details: Invoice price of the machinery P 2,000,000 Trade discount 3% Cash discount but not taken 50,000 Freight 60,000 Cost of removing old machinery 30,000 Carrying value of the old equipment 300,000 Loss on retirement of equipment 70,000 Dismantling cost of old equipment (estimated at the beginning and incurred on date of dismantling) 50,000 Installation cost of new machinery 60,000 1. What is the capitalized cost of the new machinery?

Q: Delaney Company is considering replacing equipment that originally cost $518,000 and that has…

A: Sunk cost refers to the cost or money which is already expended and irrecoverable in nature.

Q: Clutch Company purchased equipment and incurred the following costs as part of the purchase:…

A: The costs incurred to acquire the assets are treated as capitalized costs. The capitalized costs…

Q: How much is the cost of th

A: To calculate the cost of acquisition or self construction, IAS 16 should be referred.

Q: Blossom Company built a warehouse for $594,000. It could have purchased the building for $696,000.…

A: The entry that should have been made to record the acquisition is as follows:

Q: Al Maha Company purchased equipment and had the following costs: Repairing of roof RO 14,750…

A: Answer:  The acquisition cost of equipment include all the cost related with equipment like the cost…

Q: Neb wanted to purchase a $50,000 worth new sanitation system with a trade-in. If the product is…

A: DB means declining balance method.

Q: What amount should be capitalized as the cost of the new equipment?

A: As per the relevant IFRS "PPE", all the costs incurred by the Business Entity, to bring the Asset…

Q: Target purchased equipment. The following data relates to the purchase: Purchase cost Purchase cost…

A: The Depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…

Q: budget of cash disbursement for March, the total cash disbursement would be:

A: Maroon Company: Revaluation surplus= Fair value of the asset - Book value of the asset = 6000000 -…

Q: Crow Company purchased some of the machinery of Hare Incorporated, a bankrupt competitor, at a…

A: Liquidation  is the process of bringing a business to an end and distributing its assets to…

Q: mantling old mach rials used onstruction stallation spoiled in trial rum onstruction of machine…

A: Journal entries refers to the process of recording the financial transactions in the accounting…

Q: ABC Company purchases a truck by paying $5000 cash and surrendering a piece of equipment with a book…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Sheridan Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model…

A: In case of asset have commercial substance we record new asset at fair market value plus cash paid…

Q: On January 2nd, 2014 a business bought two motor vehicles for $30000 and $40000. It was decided that…

A: Non current assets arar those assets which arare being held by the business for more than one year.…

Q: What is the acquisition cost of the new computer?

A: 1 Purchase Discount: It's an offer from supplier to the buyer that…

Q: Crane Company had the following assets on January 1, 2022. Item Machinery Forklift Truck Cost…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,000.…

A: The objective of the question is to determine the cash amount Willis Bus Service had to pay to…

Q: AI Maha Company purchased equipment and had the following costs: Repairing of roof RO 14,750…

A: Cost of acquisition is the cost that an organization recognizes and records the value of an asset in…

Q: Problem C ABC Co. acquired a new machine. Details of the acquisition are as follows: Cash paid for…

A: SOLUTION- COST OF ASSET  REPRESENTS THE MONETARY COSTS INVOLVED IN ACQUIRING , INSTALLING AND…

Q: Determining the Cost of an Asset Keystone, Inc., replaced its truck-and-dolley system of moving…

A: Fixed assets means the assets which is used for many years in business and depreciated over the…

Q: Mulligan Co. purchased a new machine on January 1. The following information pertains to the…

A: Capitalized cost of an asset is the expense incurred on the buying of a fixed asset. It includes the…

Q: Anoy Inc., exchanged a trucj that cost $30,000 (now 50% depreciated) for a similar truck with an…

A: Book value of old truck=Cost-Depreciation=$30,000-$30,000×50%=$15,000

Q: capitalized amount of the equipment?

A: Meaning of Capitalized costs Capitalized costs includes all the fixed costs incurred in purchase of…

Q: A machine with a cost of $170,000 and accumulated depreciation of $105,000 is sold for $56,000 cash.…

A: Cash Flow From Operating Activities :— Operating activities are the principal revenue producing…

Q: What total amount should be capitalized as cost of the machine?

A: Original price is the whole charge related to the acquisition of an asset. The authentic price of an…

Q: A machine with a cost of $164,000 and accumulated depreciation of $102,000 is sold for $53,600 cash.…

A: Lets understand the basics. Cashflow are divided into three parts which are, (1) Cashflow from…

Q: ABC Co purchased an equipment from Hongkong for P100,000. Additional cost included the following:…

A: Journal is the book where transactions are originally recorded. Further, a journal entry is used to…

Q: e)   11,200 Accumulated Depreciation-old melter (straight-line)   6,300 Secondhand fair value of old…

A: Depreciation is a term used in accounting to describe a method of allocating the cost of a tangible…

Q: For what amount will LAR record the range?

A: Recording the purchase of an asset is an important ledger entry as it show cases in the balance…

Q: Riverbed Company purchased an electric press on June 30, 2025, by trading in its old gas model and…

A: The journal entries are prepared to record the transactions on regular basis. The exchange…

Q: 032

A: Particular Amount Gross invoice $54,400 Sale tax $3,520 Cash discount ($1,088) Freight…

Q: AI Maha Company purchased equipment and had the following costs: Repairing of roof RO 14,750…

A: Particulars Amount Cash price RO 25,250 Insurance during transit 570 Sales tax 2,870…

Q: hachine that was acquired at the beginning of the current year: ash paid for machine, including VAT…

A: In order for the cost to be capitalised, all those cost are included which are incurred to bring the…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.