Cullumber Company manufactures routers used in industrial modems. On May 15, 2017, Cullumber purchased a precision welding machine at a retail price of $98,400. Cullumber paid 5% sales tax on this purchase and hired a contractor to build a “clean” platform enclosure for the machine for $7,350. Cullumber estimates the machine will have a 5-year useful life, with a salvage value of $8,200 at the end of 5 years. Cullumber uses straight-line depreciation and employs the “half-year” convention in accounting for partial-year depreciation. Cullumber’s fiscal year ends on December 31. At what amount should Cullumber record the acquisition cost of the machine? Acquisition cost of the machine $enter The Acquisition cost of the machine in dollars
Cullumber Company manufactures routers used in industrial modems. On May 15, 2017, Cullumber purchased a precision welding machine at a retail price of $98,400. Cullumber paid 5% sales tax on this purchase and hired a contractor to build a “clean” platform enclosure for the machine for $7,350. Cullumber estimates the machine will have a 5-year useful life, with a salvage value of $8,200 at the end of 5 years. Cullumber uses straight-line depreciation and employs the “half-year” convention in accounting for partial-year depreciation. Cullumber’s fiscal year ends on December 31. At what amount should Cullumber record the acquisition cost of the machine? Acquisition cost of the machine $enter The Acquisition cost of the machine in dollars
Chapter10: Project Cash Flows And Risk
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Cullumber Company manufactures routers used in industrial modems. On May 15, 2017, Cullumber purchased a precision welding machine at a retail price of $98,400. Cullumber paid 5% sales tax on this purchase and hired a contractor to build a “clean” platform enclosure for the machine for $7,350. Cullumber estimates the machine will have a 5-year useful life, with a salvage value of $8,200 at the end of 5 years. Cullumber uses straight-line depreciation and employs the “half-year” convention in accounting for partial-year depreciation. Cullumber’s fiscal year ends on December 31.
At what amount should Cullumber record the acquisition cost of the machine?
| Acquisition cost of the machine | $enter The Acquisition cost of the machine in dollars |
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