Sicily Pizza purchased baking ovens from New World Deli. New World Deli was closing its bakery business and sold its three-year-old ovens for $341,000. In addition to the purchase price, Sicily Pizza paid shipping costs of $16,000. Employees of Sicily Pizza installed the ovens; labor costs were $17,000. An outside contractor performed some of the electrical work for $3,800. Sicily Pizza consumed pizza dough with a cost of $1,300 in testing the ovens. It then installed new timers on the ovens at a cost of $800 and placed the machines in operation.Required:1. Prepare a schedule showing the amount at which Sicily Pizza should record the ovens in the Equipment account.2. Indicate where any amounts not included in the Equipment account should be recorded.

Sicily Pizza purchased baking ovens from New World Deli. New World Deli was closing its bakery business and sold its three-year-old ovens for $341,000. In addition to the purchase price, Sicily Pizza paid shipping costs of $16,000. Employees of Sicily Pizza installed the ovens; labor costs were $17,000. An outside contractor performed some of the electrical work for $3,800. Sicily Pizza consumed pizza dough with a cost of $1,300 in testing the ovens. It then installed new timers on the ovens at a cost of $800 and placed the machines in operation.Required:1. Prepare a schedule showing the amount at which Sicily Pizza should record the ovens in the Equipment account.2. Indicate where any amounts not included in the Equipment account should be recorded.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 44P

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