The following are costs related to the purchase of a second-hand piece of equipment. Required: Indicate with an 'X' in the appropriate column whether the expenditure should be included in the cost of the asset. Include in the Not included Asset total In the Asset Total Description of cost expenditure Freight Installation Repair of vandalism during installation Replacement of worn-out parts at time of purchase Repair of damage incurred in reconditioning the equipment Fees paid to attorney to review purchase agreement B Computer equipment that was originally purchased for $ 170,000 and now has an accumulated depreciation balance of $ 130,000 is sold for cash of $ 60,000 Total $ 360,000 Required: Record the sale of the computer equipment Date Account Description Debit Credit Depreciatio expenses Accumulated depreciation

The following are costs related to the purchase of a second-hand piece of equipment. Required: Indicate with an 'X' in the appropriate column whether the expenditure should be included in the cost of the asset. Include in the Not included Asset total In the Asset Total Description of cost expenditure Freight Installation Repair of vandalism during installation Replacement of worn-out parts at time of purchase Repair of damage incurred in reconditioning the equipment Fees paid to attorney to review purchase agreement B Computer equipment that was originally purchased for $ 170,000 and now has an accumulated depreciation balance of $ 130,000 is sold for cash of $ 60,000 Total $ 360,000 Required: Record the sale of the computer equipment Date Account Description Debit Credit Depreciatio expenses Accumulated depreciation

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 42E

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The following are costs related to the purchase of a second-hand piece of equipment.
Required: Indicate with an 'X' in the appropriate column whether the expenditure should be included in the cost of the asset.

Include in the	Not included
Asset total	In the Asset Total	Description of cost expenditure
		Freight
		Installation
		Repair of vandalism during installation
		Replacement of worn-out parts at time of purchase
		Repair of damage incurred in reconditioning the equipment
		Fees paid to attorney to review purchase agreement


B
Computer equipment that was originally purchased for		$ 170,000
and now has an accumulated depreciation balance of		$ 130,000
is sold for cash of				$ 60,000
			Total	$ 360,000
Required: Record the sale of the computer equipment

Date	Account Description	Debit	Credit
	Depreciatio expenses
	Accumulated depreciation