For what amount will LAR record the range?
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LAR Corp. purchased a commercial range by paying cash of $13,500. The range's fair value on the date of the purchase was $14,000. The company incurred $600 in transportation costs, $400 installation fees, and paid $500 annual insurance on the equipment.
For what amount will LAR record the range?
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- 9. ABC Company purchased a machine on December 1, 20X1 at an invoice price of 4, 500, 000 with terms 2/10, n/30. On December 10, 20X0, ABC paid the required amount for the machine. On December 1, 20X0, ABC paid 80, 000 for delivery of the machine and on December 31, 20X0, it paid 310, 000 for installation and testing of the machine. The machine was ready for use on January 1, 20X1. It was estimated that the machine would have a useful life of 5 years and a residual value of 800, 000. Engineering estimates indicated that the useful life in productive units was 200, 000. Units actually produced during the first 2 years were 30, 000 in 20X1 and 48, 000 in 20X2. ABC Company decided to use the output method of depreciation. What is the depreciation of the machine for 20X2?On January 1. Year1, Company purchased a machine for $200,000. Company paid $50,000 as a down-payment and borrowed the other $150,000. Company paid interest of $2,000 on the loan during year 1. Company paid shipping costs of $4,000 and installation costs of $10,000. What will be the acquisition cost of the machine?Falther Inc. acquired a new processing machine: Invoice cost P1,800,000 Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. 1. What amount of should be recorded as cost of the new machine?
- Jisoo Company purchased an equipment with a list price of 1,500,000 with the following terms:trade discount of 15%,2/10; n/30. The account was paid at the end of the 30 days. The useful life of 5 years. estimated dismanting cost ifs P70,000.The appropriate discount rate is 10%.determine the cost of acquisition of the Equipment?1. ABC Company purchases a truck by paying $5000 cash and surrendering a piece of equipment with a book value of $12,000 and a fair value of $15,000. What is the cost of the truck acquired in this trade? A. $15,000 B. $20,000 C. $17,000 D. $10,000 2. Routine repair and maintenance costs should be A. capitalized and depreciated over the expected useful life. B. added to the cost of the asset but not depreciated. C. expensed in the period incurred. D. expensed in the next fiscal year. 3. As long as three conditions are present, interest is capitalized for the period. Which one of the following is not one of these three conditions? A. Expenditures for the asset have begun. B. Activities that are necessary to get the asset ready for its intended use are in progress. C. The asset is operational. D. Interest cost is being incurred.Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $315,000. The estimated fair values of the assets are land, $60,000; building, $220,000; and equipment, $80,000. Journalize the purchase using the relative sales value method. Date Account Debit Credit MM/DD/YY 6 of 9
- 1. Assume Trois Cuisines Manufacturing bought three machines in a $100,000 lump-sum purchase. An independent appraiser valued the machines as follows: (1) Trois Cuisines paid one-third in cash and signed a note payable for the remainder. What is each machine’s individual cost? (2) Immediately after making this purchase, Trois Cuisines sold machine 2 for its appraised value. What is the result of the sale? Round to three decimal places. The result of the sale a _____ of $_____. Prepare the journal entry to record the sale. Please show all steps.Page 9 & page 12! Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is determined to have commercial substance. The machine cost $30,000, has a book value of $6,000, and has a market value of $8,500. The truck has a cost of $12,000 and a book value of $8,000 on Harmes books. Goodman agrees to pay $500 to complete the exchange. Prepare journal entries for Goodman and Harmes to record the exchangeAbby Corporation acquired a new processing machine. Details of the acquisition are as follows: Invoice cost, terms, 5% discount if payment is made in 30 days. The company did pay within the discount period, P300,000, Cost of transporting the machine to the corporation's factory, P5,000. Cost of installation (which includes additional P2,000 incurred due to negligence of the workers), P11,000. The corporation's chief engineer spent one-fourth of his time during trial runs of the new machine, his monthly salary is P22,000. The company paid P1,000 for removing the old machine. (The old machine was sold for less than its book value.) At what amount should Abby Corporation capitalize the new processing machine?
- ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65. Installation cost is P50,000. Decommissioning cost is P200,000. Expected useful life is 10 years and effective rate was 12% How much is the initial cost of the equipment? 2,550,000 2,539,395 2,614,395 2,750,000Mad Hatter Enterprises purchased new equipment for $362,000, terms f.o.b. shipping point. Other costs connected with the purchase were as follows: State sales tax Freight costs Insurance while in transit Insurance after equipment placed in service Installation costs Insurance for the first year of operations Testing $28,900 5, 300 770 1,170 1,850 2, 250 670 Required: Determine the capitalized cost of the equipment. Cost of equipmentEntity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of P10,000 trade discount 800,000 Non-refundable purchase taxes 20,000 Delivery and handling costs 40,000 Installation costs 30,000 Present value of decommissioning and restoration costs 10,000 1.) How much is the initial cost of the equipment? A. P 890,000 B. P 820,000 C. P 900,000 D. P 870,000
