Bonita Industries purchased equipment for $30600. Sales tax on the purchase was $1450. Other costs incurred were freight charges of $360, repairs of $700 for damage during installation, and installation costs of $410. What is the cost of the equipment? $30600. $33520. $32820. $32050.

Bonita Industries purchased equipment for $30600. Sales tax on the purchase was $1450. Other costs incurred were freight charges of $360, repairs of $700 for damage during installation, and installation costs of $410. What is the cost of the equipment? $30600. $33520. $32820. $32050.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5MC: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to...

See similar textbooks

Related questions

Q: Zamans Equipment Limited acquired as equipment at a cost of $65000 with the term FOB destination,…

A: The determination of the Cost of the equipment to be reported on the Balance sheet is shown…

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

A: The costs incurred on non cash assets till they are ready to use are to be capitalized by the…

Q: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costsamounted to…

A: Fixed assets are assets that are held or acquired by the business for longer period of time. For…

Q: On March 20, 2020, Fine Touch Corporation purchased two machines at auction for a combined total…

A: Workings: Fair value of Machine X 106,650 Fair value of Machine Y 130,350 Total…

Q: Benson Company acquired a machine that involved the following expenditures and related factors:…

A: Correct option is b Explanation

Q: ece of machinery has marked price of P550,000. It was purchased under the term 15%, 10%, and 5%…

A: Given: Marked Price of Machinery = P550,000 Three Discount are Given i.e. 15%,10% and 5% Cost of…

Q: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to…

A: Capitalization is the process by which the long-term asset is recorded on the balance sheet and its…

Q: Sheridan Company incurs the following costs in purchasing equipment: invoice price, $40,500;…

A: Equipment is a kind of fixed asset that a company utilizes in its operations. It is included on the…

Q: Grab Manufacturing Co. purchased a ten-ton draw press at a cost of $180,000. Since the company made…

A: Any amount of money spent to generate the revenues in a business is known as expenses.

Q: LOQUACIOUS TALKATIVE Co. acquired a piece of factory equipment overseas on a cash basis for…

A: All fixed assets in the business should be capitalised at their purchase cost along with all…

Q: Blossom Company incurs these expenditures in purchasing a truck: cash price $20,000, accident…

A: Given: Cash price = $20,000 Insurance = $1,500 Sales tax = $1,100 License = $200 Painting and…

Q: The Miller Company paid $10,000 to acquire a 100 ton press. Freight charges to deliver the…

A: Total amount should be capitalized = Original Cost + Freight + Installation cost + Machine testing

Q: Curry Corporation began operations in the current year. During year it incurred the following…

A: Acquisition cost refers to the purchase cost of inventory or materials. It not only includes the…

Q: Richie purchased factory equipment on 1 January 2021 with an invoice price of RM80,000. Other costs…

A: >Capitalization of Cost of long term asset. --The accounting principle states that all the cost…

Q: Warren Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted…

A: Fixed assets should be recorded at cost of acquisition. Cost includes all expenditures directly…

Q: During the current year, Erving Company exchange an old packing machine which cost 1 200 00 and…

A: Fixed assets are those assets which a company held for a longer period of time, i.e., for period…

Q: Sandwich Express incurred the following costs related to its purchase of a bread machine.Cost of the…

A: Cost of equipment: It can be defined as the cost of buying the equipment, deducting any discount…

Q: BE10-2 Rich Castillo Company incurs the following expenditures in purchasing a truck: cash price…

A: Cost is the price which is paid for a product or service.

Q: ABC Co purchases a Bus at a price of OMR 25,000 and incurred other expenditures such as…

A: Cost of bus to be capitalised = Purchase price + Non refundable taxes + paitning of truck

Q: Crane Company incurs these expenditures in purchasing a truck: cash price $22,480, accident…

Q: TTG Landscaping purchased a dump truck for $150,000. In addition, they spent $12,000 in sales tax,…

A: Journal entry is recorded by the business to record event and transaction occurred during particular…

Q: Granite Company purchased a machine costing $124,000, terms 2/10, n/30. The machine was shipped FOB…

A: Answer - Computation of Cost to be recorded for this Machine Particulars Amount Amount…

Q: Cliff Company traded in an old truck for a new one. The old truck had a cost of $77,000 and…

A: Note: When there is commercial substance exist in the exchange of assets transaction, then new…

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: Beaverton Lumber purchased milling equipment for $35,000. In addition to the purchase price,…

A: Particulars Amount Purchase cost $35,000 Add: Freight $1,500 Add: Installation $3,000…

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: sheffield Corp. incurs the following expenditures in purchasing a truck: cash price $53,000,…

A: Note: Cost of accident insurance and motor vehicle license will not be capitalized with the cost of…

Q: Lavoie Corporation acquired new equipment at a cost of $100,000 plus 7% provincial sales tax and 5%…

A: The Financial Accounting Standards Board (FASB) produced a collection of accounting principles,…

Q: GRACE Co. recently acquired two items of equipment. Acquired a press at an invoice price of…

A: In the given question, we were given two equipment, one of which is a press machine and the other is…

Q: The following data relate to a firm's purchase of a machine used in the manufacture of its product:…

A: Assets: Properties or things owned by business called Assets. Example: Machinery , furniture etc.

Q: Worthington Chandler purchased equipment for $40k. Sales tax on the purchase was $2400. Other costs…

A: Cost of Assets Cost of assets represents the monetary costs involved in acquiring, installing and…

Q: The company estimates that the useful life of the machine is 4 years with a Tk. 5,000 salvage value…

A: The calculation of amount of annual depreciation is shown hereunder : Cash price of machine Tk…

Q: Granite Company purchased a machine costing $121,000, terms 2/10, n/30. The machine was shipped FOB…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Wildhorse Co. purchased equipment on January 1 at a list price of $155000, with credit terms 3/10,…

A: Compute the total cost of new equipment:

Q: 1 Ross Company incurs these expenditures in purchasing a truck: cash price $25,000, accident…

A: Answer: Cost of Truck include following expenditure: Cash Price $25,000 Sales tax $1,080 Total…

Q: On March 20, 2020, FineTouch Corporation purchased two machines at auction for a combined total cost…

A: Recognition of Initial cost of Machine For recognize the initial cost of machine which are including…

Q: The Miller Company paid $70,000 to acquire a 100 ton press. Freight charges to deliver the equipment…

A: The amount of equipment should be capitalized the total cost incurred upto the start of operation of…

Q: Puerto Princesa Company sold its parking lot for P2,000,000. The lot has a zonal value of P2,500,000…

A: Parking Lot sold for P 2000000 Zonal Value P 2500000 Appraisal Value P 1800000

Q: On June 1, 2022, City Car Sales sells a new car costing P4,726,400 for P6,804,000. A used car is…

A: According to the given question, we are required to compute the net income for City Car Sales. Net…

Q: ALPHA Company purchased equipment on 1/1/N with an invoice price of $80,000. Purchase taxes $16,000.…

A: Answer a)

Q: Cliff Company traded in an old truck for a new one. The old truck had a cost of $300,000 and…

A: Recorded value of new Truck = Fair value of the new Truck received where, Fair value of the new…

Q: On March 20, 2020, FineTouch Corporation purchased two machines at auction for a combined total cost…

A: Journal entries are passed following the golden rules of accounting. Debit all assets and expenses…

Q: A machine was purchased at an invoice price of P 300,000, subject to a 2% cash discount if paid…

A: Equipment cost includes: 1. Purchase price (Invoice price less cash discounts) 2. Installation and…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: The after-tax salvage value of the asset is calculated by deducting the tax rate on the difference…

Q: Curry Corporation began operations in the current year. During the Cur it incurred the following…

A: Costs of purchase refers to the cost that is incurred for purchasing the materials and it also…

Q: Raymond Stamping Services purchased a stamping machine priced at $21,500. The firm had to pay a…

A: Depreciation: It is a non-cash expense. This is the decrease in the value of a fixed asset…

Q: On March 20, 2020, FineTouch Corporation purchased two machines at auction for a combined total cost…

A: PLEASE GIVE A LIKE, your response matters Date Account Titles and Explanation Debit…

Q: During the current year, Marshall Construction trades an old crane that has a book value of $90,000…

Q: The following data relate to a firm's purchase of a machine used in the manufacture of its product:…

A: Total acquisition cost = Invoice price + Sales tax - Cash discount + Feight + Insurance cost while…

Q: Toro Co. has equipment with a carrying amount of $700,000. The value-in-use of the equipment is…

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Question

$30600.

$33520.

$32820.

$32050.

Expert Solution

Step 1: Definition

Property, Plant, and Equipment:

Property, Plant, and Equipment refers to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.
Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $90,000 cash B. $85,000 cash C. $80,000 cash
Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.
Marigold Corp. purchased equipment for $31200. Sales tax on the purchase was $1470. Other costs incurred were freight charges of $390, repairs of $690 for damage during installation, and installation costs of $400. What is the cost of the equipment? $31200. $34150. $33460. $32670.
Warren Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200, and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? Select one: $59,400 $60,600 $66,100 $54,000
Beaverton Lumber purchased milling equipment for $35,000. In addition to the purchase price, Beaverton made the following expenditures: freight, $1,500; installation, $3,000; testing, $2,000; personal property tax on the equipment for the first year, $500. What is the initial cost of the equipment?
Assume that Sohar Aluminium Company purchased a machinery for OMR 2000 and spent OMR200 for its transportation. In addition they paid tax OMR 450 during purchase, Transportation cost OMR 100, Insurance during transportation OMR 50, and Assembling charges OMR 100, installation and testing charges OMR 250. After transportation and installation, the company also paid the insurance premium of OMR 50 to cover the future loss from the machinery due to accidents and breakdowns. Compute the cost of the machinery. a. None of the given options b. OMR3200 c. OMR3100 d. OMR3150
Hadley Company purchased an asset with a list price of $135580. Hadley paid $413 of transportation-in cost, $968 to train an employee to operate the equipment, and $637 to insure the asset against theft after it has been set up in the factory. The asset was purchased under terms 2/20/n30 and Hadley paid for the asset within the discount period. Based on this information, Hadley would capitalize the asset on its books at what dollar amount? $_______________
Beaverton Lumber purchased a milling machine for $35,000. In addition to the purchase price, Beaverton made the following expenditures: freight, $1,500; installation, $3,000; testing, $2,000; personal property tax on the machine for the first year, $500. What is the initial cost of the machine?
Sandwich Express incurred the following costs related to its purchase of a bread machine.Cost of the equipment $ 20,000Sales tax (8%) 1,600Shipping 2,200Installation 1,400Total costs $ 25,200At what amount should Sandwich Express record the bread machine?a. $20,000.b. $21,600.c. $23,800. d. $25,200.
Clutch Company purchased equipment and incurred the following costs as part of the purchase: Purchase price $10,000 Transportation costs $500 Repair for damage incurred during installation $250 Installation costs $550 Sales tax $750 What amount should Clutch capitalize as the cost of the equipment? 12,050 11,800 11,000 10,750
On January 1, 2021, Fatema & Company purchased a machine for use in its production process. The cash price of the machine was Tk. 600,000. Related expenditures included: value added tax Tk. 50,000, shipping costs Tk. 10,000, insurance during shipping Tk. 18,000, installation and testing costs Tk. 25,000, Go-down rent Tk. 5,000 and Tk. 10,000 of oil and lubricants to be used with the machinery during its first year of operation. The company estimates that the useful life of the machine is 4 years with a Tk. 5,000 salvage value remaining at the end of that time period