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Grinding mills A and B are being considered for a 12-year service in a chemical plant. The minimum attractive
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- Rodgers Company purchased equipment and these costs were incurred: Cash price $55,000 Sales taxes 3,600 Insurance during transit 640 Installation and testing 860 Total costs $60,100 Group of answer choices $55,000 $58,600 $59,240 $60,1001. Anniston Company purchased equipment and incurred the following costs: Purchase price $52,000 Cost of trial runs 750 Installation costs 250 Sales tax 2,600 What is the cost of the equipment? a.$52,000 b.$54,600 c.$54,850 d.$55,600New Office Equipment List price: $60,000; terms: 2/10, n/30; paid within the discount period. Transportation-in: $1,500. Installation: $2,500. Cost to repair damage during unloading: $650. Routine maintenance cost after eight months: $350. determine the amount of cost to be capitalized in the asset account office equipment: ?
- The following information pertains to the January 2, year 2 transaction replacing a print machine for Hidden Creek Enterprises, Inc.Net book value – old print machine $20,000Total cost of new machine $180,000Down payment on new machine $35,000Sale price of old machine $30,000Tax rate 30%What is the net total of relevant costs on January 2, year 2?a. $173,000b. $153,000c. $28,000d. 8,000.Nelson Company purchased equipment and incurred the following costs: Cash price = $55,000 Sales taxes = $4,400 Insurance during transit = $400 Site preparation, installation, and testing= $2,300What amount should be used as the cost basis of the equipment?Worthington Chandler purchased equipment for $40k. Sales tax on the purchase was $2400. Other costs incurred were freight charges of $600 repairs of $350 for damage during installation and installation costs of $675. What is the cost of the equupment? a.) 43,675 b.) 40k c.) 42,400 d.) 44,025
- On 1 October 20X5 Dearing Co acquired a machine under the following terms. $ Cost 1,050,000 Trade discount (applying to cost only) 20% Early Settlement discount taken(on the payable amount 5% of the based cost only) Freight charges 30,000 Electrical installation cost 28,000 Staff training in use of machine 40,000 Pre-production testing 22,000 Purchase of a three-year maintenance contract 60,000 On 1 October 20X7 Dearing Co decided to upgrade the machine by…ABC Consigned 15 construction machines to XYZ Co. The machines cost P450,000 each. Freight on the shipment which was paid by ABC amounted to P300,000. XYZ Co. submitted an account sale stating that they had sold 6 units and remitted P3,412,500 balance due to ABC after the following deductions: Commission 20% of selling price; Marketing expenses P325,000; Delivery of items sold 250,000; Delivery cost paid upon receipt of consignment 137,500. Compute for the selling price per unit.1. On 1 April 20x1, ABC Co. bought a new lorry and made the following payments in relation to it: Costs as per supplier’s list $120,000 Less: Agreed discount 10,000 110,000 Delivery charge 1,000 Installation charge 4,000 Maintenance charge 4,000 An additional component to increase capacity 3,000 Spare parts 3,500 Total 125,500 The lorry is depreciated on a straight-line basis over a four-year life and the estimated residual value $38,000. ABC Co. prepares their accounts on 31 December each year, the company policy is to charge depreciation on a month for month basis. After exactly two years and three months, the lorry is out of…
- On 1 October 20X5 Dearing acquired a machine under the following terms. Hours $ Manufacturer's base price 1,050,000 Trade discount (applying to base price only) 20% Early settlement discount taken (on the payable amount of the base cost only) 5% Freight charges 30,000 Electrical installation cost 28,000 Staff training in use of machine 40,000 Pre-production testing 22,000 Purchase of a three-year maintenance contract 60,000 On 1 October 20X7 Dearing decided to upgrade the machine by adding new components at a cost of $200,000. This upgrade led to a reduction in the production time per unit of the goods being manufactured using the machine. What amount should be recognised under non-current assets as the cost of the machine? A $840,000 B $920,000 C $898,000 D $870,0001. Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit RM Credit RM Inventory of raw materials 1 Jan 2020 21,000 Inventory of finished goods 1 Jan 2020 38,900 Work in progress 1 Jan 2020 13,500 Wages (direct RM180,000, factory indirect RM145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials 370,000 Productive machinery (cost RM280,000) 230,000 Administration computers (cost RM20,000) 12,000 General factory expenses 31,000 Lighting 7,500 Factory power 13,700 Administration salaries 44,000 Sales representative salaries 30,000 Commission on sales 11,500 Rent 12,000 Insurance 4,200 General administration expenses 13,400 Bank charges 2,300 Discount allowed 4,800 Carriage outwards 5,900 Sales…Equipment(net), $80,000. The equipment originally cost $140,000. How would I classify this on a balance sheet? Total asset is $104,000, current asset is $52,000.
