Crane Company purchases a new delivery truck for $50,000. The sales taxes are $5,000. The logo of the company is painted on the side of the truck for $1,600. The truck's annual license is $130. The truck undergoes safety testing for $270. What does Crane record as the cost of the new truck? A) $56,870 B) $54,870 C) $55,000 D) $57,000

Crane Company purchases a new delivery truck for $50,000. The sales taxes are $5,000. The logo of the company is painted on the side of the truck for $1,600. The truck's annual license is $130. The truck undergoes safety testing for $270. What does Crane record as the cost of the new truck? A) $56,870 B) $54,870 C) $55,000 D) $57,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
Sandhill Co. purchases a new delivery truck for $78000. The sales taxes are $4400. The logo of the company is painted on the side of the truck for $1000. The truck’s annual license is $100. The truck undergoes safety testing for $240. What does Sandhill record as the cost of the new truck?
Carley Company purchases a new delivery truck for $45,000. The sales taxes are $3,000. The logo of the company is painted on the side of the truck for $1,200. The annual truck license is $120. The truck undergoes safety testing for $220. What does Carley record as the cost of the new truck?
Wildhorse Co. purchases a new delivery van for $83000. The sales taxes are $5250. The logo of the company is painted on the side of the van for $1200. The van's annual license is $200. The van undergoes safety testing for $270. What does Wildhorse record as the cost of the new van? $88250. $89920. $89470. $89720.
Triton Limited purchases a new delivery truck for $80,000. The insurance cost during transit from the motor vehicle dealer to Triton is $3,000. The logo of the company is painted on the side of the truck for $500. The recurring annual truck registration is $700 and a 12 month accident insurance policy is $1,100. The truck undergoes the initial safety testing to make sure it is road worthy for the first time is $330. What does Triton Limited record as the cost of the new truck? Select the one correct answer: O $85,630. O $80,000. O $83,830. O $83,000.
Stilton Ltd purchases a new delivery truck for $80,000 . The logo of the company is painted on the side of the truck for $1,000 . The truck registration is $500 , and a 12 -month accident insurance policy is $1,500 . The truck undergoes safety testing for $660 . What does Stilton Ltd record as the cost of the new truck? Select one: a. $81,660 . b. $80,000 . c. $83,060 . d. $81,000
The Dalton Company purchases a new delivery truck for $20,000. The sales taxes are $1,000. The logo of the company is painted on the side of the truck for $600. The truck license is $60. The truck insurance for two years is $110. What does Dalton record as the cost of the new truck? a. $21,600 b. $21,710 c. $21,770 d. $20,710
Rizio Company purchases a machine for $14,000, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $280 discount. Transportation costs of $316 were paid by Rizio. The machine required mounting and power connections costing $968. Another $456 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $350 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded
Rizio Co. purchases a machine for $12,000, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $120 discount. Transportation costs of $271 were paid by Rizio. The machine required mounting and power connections costing $830. Another $391 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $360 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
Whole Grain Bakery purchases an industrial bread machine for $30,000. In addition to the purchase price, the company makes the following expenditures: freight, $2,000; installation, $4,000; testing, $1,500; and property tax on the machine for the first year, $600. What is the initial cost of the bread machine?
2. A vehicle is purchased by ABC Co. The vehicle cost $35,000 and has a useful life of 5 years or 100,000 miles with a salvage value of $3,000 at the end of its useful life. There is a 6 percent sales tax due on the vehicle upon registration with the Registry of Motor Vehicles, and the registration fee is $120 in order to get new plates. Every year a $75 dollar license renewal fee is charged by the Registry. After six months, the vehicle is brought to the dealer for a $75.00 oil and filter change. In its six months of operation, it has a flat tire that cost $35 to repair. Two years down the road, the engine of the truck seizes and an engine replacement is performed, which cost $3,000. With regard to the above example, which of these expenditures are capitalized, and which are expensed? The cost of the vehicle The sales tax The plate and registration fee Annual registration fee The oil and filter change The flat tire repair The engine replacement
Rizio Company purchases a machine for $10,600, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $106 discount. Transportation costs of $240 were paid by Rizio. The machine required mounting and power connections costing $733. Another $346 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $325 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.