8Fixed and Intangible AssetsAPPLY WHAT YOU HAVE LEARNED8-1.Acquisition of assets.he following asset, identify the costs of the asset. For any costs incurred that are noincluded in the asset cost, specify how they would be recorded.rowth Company purchased a new machine for its manufacturing facility. CostsIncurred in conjunction with this purchase included the following:$90,000, subject to 2/10, n/30 discount5,4006,0001,900Invoice priceSales taxFreight to ship to GrowthTransport to factoryRepair of chip in machine fromdamage in loadingTraining of operatorsLunch for truck driver in transit5003,60025Make the journal entry to record the incurrence of these costs. Be sure to showcalculations for combined amounts. You may credit Cash for the total.

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Asked Feb 15, 2020
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8
Fixed and Intangible Assets
APPLY WHAT YOU HAVE LEARNED
8-1.
Acquisition of assets.
he following asset, identify the costs of the asset. For any costs incurred that are no
included in the asset cost, specify how they would be recorded.
rowth Company purchased a new machine for its manufacturing facility. Costs
Incurred in conjunction with this purchase included the following:
$90,000, subject to 2/10, n/30 discount
5,400
6,000
1,900
Invoice price
Sales tax
Freight to ship to Growth
Transport to factory
Repair of chip in machine from
damage in loading
Training of operators
Lunch for truck driver in transit
500
3,600
25
Make the journal entry to record the incurrence of these costs. Be sure to show
calculations for combined amounts. You may credit Cash for the total.
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8 Fixed and Intangible Assets APPLY WHAT YOU HAVE LEARNED 8-1. Acquisition of assets. he following asset, identify the costs of the asset. For any costs incurred that are no included in the asset cost, specify how they would be recorded. rowth Company purchased a new machine for its manufacturing facility. Costs Incurred in conjunction with this purchase included the following: $90,000, subject to 2/10, n/30 discount 5,400 6,000 1,900 Invoice price Sales tax Freight to ship to Growth Transport to factory Repair of chip in machine from damage in loading Training of operators Lunch for truck driver in transit 500 3,600 25 Make the journal entry to record the incurrence of these costs. Be sure to show calculations for combined amounts. You may credit Cash for the total.

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Expert Answer

Step 1

Compute cost of new machine for its manufacturing facility as shown below:

 

Accounting homework question answer, step 1, image 1

 

The cost of new machine includes invoice price, sales tax incurred for purchase of machine, freight cost to ship, transport cost incurred to bring machinery to factory, repair of chip in machine to make it ready to use and lunch for truck driver in transit is the ...

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