Tri-City Ironworks Co. reported $44,500,000 for equipment and $29,800,000 for accumu-lated depreciation—equipment on its balance sheet. Does this mean (a) that the replacement cost of the equipment is $44,500,000 and (b) that $29,800,000 is set aside in a special fund for the replacement of the equipment? Explain.

Q: Equipment in general governmental service that had been acquired several years ago by a capital…

A: Answer:-  Journal entry meaning:- Journal entry is the record of the business transactions in the…

Q: A company purchased an asset for $3,700.000 that will be used in a 3-year project. The asset is in…

A: Purchase price of asset =3,700,000Number of years =31-year depreciation =33.33%2-year depreciation…

Q: A piece of newly purchased industrial equipment costs $1,030,000 and is classified as seven-year…

A: Rate of depreciation in MACRS 7 years YearsMACRS Rate 7…

Q: The Minister of Finance is reviewing the depreciation regulations. Currently the Canadian Income Tax…

A: Patent Cost = $700,000 Existing depreciation on Intangible = Straight-line basis for 7 years Revised…

Q: Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight-…

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

Q: The shed initially cost 21300 but had to be renovated at a cost of 740. The shed was expected to…

A: Capitalized costs are not charged to expenses in the period of occurrence; instead, they are…

Q: BBB Inc revalues an asset with a book value of $715,000 to its fair value of $750,000. The original…

A: Depreciation is the method of reducing the value of the historical cost of the asset by each passing…

Q: Indigo Architecture made the following cash expenditures during its first year in operations: 1. 2.…

A: Land and Buildings are tangible assets of a business that are shown on the balance sheet as Fixed…

Q: how much more money is needed to make this possible?

A: A capital asset replacement refers to the process of replacing an old asset with a new one of…

Q: Inspector Gadget Ltd has a policy of writing off development expenditure to the Income Statement as…

A: Intangbible assets do not have a physical existence. Expenses related to research and development…

Q: A construction contractor opted to purchase a dump truck for transportation and dumping of soil at a…

A: Purchase Price = 2,500,000 Assuming Interest rate = 10%

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: Answer the following: 1. How much should be recorded as cost of Land, Building and Machinery? 2.…

A: Fixed assets are defined as the resources held with the entity which helps to generate business…

Q: A contractor imported a bulldozer paying P650k to the manufacturer, freight expense amounted to…

A: Sinking Fund Method. An equal amount has been invested in a sinking fund for the purchase of new…

Q: capitalized amount of the equipment?

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

Q: 16. Determine the amount of the total amortization cost base, assuming (1) no exclusions from the…

A: To determine the total amortization cost base, we need to consider the two scenarios you…

Q: sted a depreciation schedule of straight-line and double- declining-balance depreciation methods.…

A: Depreciation refers to the concept which evaluates the decline rate of an asset until its entire…

Q: . The SF Method  (Sinking Fund Method)

A: Given data is − Initial cost of Asset, X = $60,000 Scrap value of Asset, S = $12,000 Useful life of…

Q: An item of property, plant and equipment was acquired for $250,000 on 120-day terms. At the time of…

A: Organizations that run a business, incur some costs and expenses. Companies have to categorize this…

Q: The following were taken from the proposed investment plan of Satue Incorporated: Cost of…

A: Bailout Period: In accounting, the bailout repayment technique demonstrates the length of time…

Q: For each of the following expenditures, indicate the type of account (asset or expense) in which the…

A: An asset represents any source of future economic benefit to the firm that goes beyond one year,…

Q: ! Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets…

A: Working Note : Formula Straight Line Depreciation = (Cost of asset - Residual value) / Estimated…

Q: A non-current asset was acquired for $200,000 on 200-day terms. Which of the following statements…

A: Costs are connected with purchasing business resources, and they're displayed on the business…

Q: A company purchased a track of land with the intent to use the land to put a new building. However,…

A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…

Q: Under the traditional reporting method for infrastructure assets, which of the following are…

A: Infrastructure assets are an essential component of a business's long-term activities and need to be…

Q: ! Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets…

A: The Cost of an Asset includes the purchase price of the asset and all incidental expenses incurred…

Q: with no salvage value. Determine the length of service life necessary if the depreciation method…

A: Depreciation refers to the process of configuring the diminished value of an asset until its value…

Q: 032

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

Q: During the year ended 30 June 20X3, Emily Ltd spent GHS 300,000 on the development of a new range of…

A: As  per  Ind AS 38 Any expenditure on account of research is to be charge to P&L A/c Any…

Q: Indicate whether each of the following expenditures should be classified as land, land improvements,…

A: Step 1: Step 2: Step 3: Step 4:

Q: 17.ABC Company acquired a tract of land containing an extractable natural resource. ABC Co. is…

A: Solution..   Cost of acquisition = P8,000,000  Estimated restoration cost = P500,000  Development…

Q: Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000…

A: A special revenue fund is defined as a type of fund set up for the purpose of using the money for…

Q: On January 1, 2020 Gingerbread, Corp. purchased a reindeer merry-go-round as an attraction to draw…

A: Capitalized Cost of Asset included all those expenses which are incurred to make the asset ready to…

Q: Two investments involving a granary qualify for different property classes.Investment A costs…

A: Modified Accelerated Cost Recovery System (MACRS) is an approach used in the United States for the…

Q: A company purchased a large new truck-tractor for over-the-road use. It has a cost basis of s180,000…

A: Depreciation means to decrease in the value of assets. this is used to decrease the the book value…