3. On February 25, Browne Company acquired four pieces of machinery for a lump sum of $693,750. The company then paid $30,450 to have the machines installed. Hint: Because the company could not have used the machines if they had not been installed, the cost to install them would be included in their carrying value on the company's books (i.e., you should capitalize, not expense, the installation cost). Based on an outside appraisal, the individual values of the machines were: Machine 1 Machine 2 $ 234,300 319 500

3. On February 25, Browne Company acquired four pieces of machinery for a lump sum of $693,750. The company then paid $30,450 to have the machines installed. Hint: Because the company could not have used the machines if they had not been installed, the cost to install them would be included in their carrying value on the company's books (i.e., you should capitalize, not expense, the installation cost). Based on an outside appraisal, the individual values of the machines were: Machine 1 Machine 2 $ 234,300 319 500

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5Q: For each of the following transactions, state whether the cost would be capitalized (C) or recorded...

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