Costs of acquiring fixed assetsMelinda Stoffers owns and operates ABC Print Co. During February, ABCincurred the following costs in acquiring two printing presses. Oneprinting press was new, and the other was purchased from a businessthat recently filed for bankruptcy.Costs related to new printing press: 1. Fee paid to factory representative for installation2. Freight3. Insurance while in transit4. New parts to replace those damaged in unloading5. Sales tax on purchase price6. Special foundation Costs related to used printing press:7. Fees paid to attorney to review purchase agreement8. Freight9. Installation 10. Repair of damage incurred in reconditioning the press11. Replacement of worn-out parts12. Vandalism repairs during installation a. Indicate which costs incurred in acquiring the new printingpress should be debited to the asset account.b. Indicate which costs incurred in acquiring the used printingpress should be debited to the asset account.
Costs of acquiring fixed assets
Melinda Stoffers owns and operates ABC Print Co. During February, ABC
incurred the following costs in acquiring two printing presses. One
printing press was new, and the other was purchased from a business
that recently filed for bankruptcy.
Costs related to new printing press:
1. Fee paid to factory representative for installation
2. Freight
3. Insurance while in transit
4. New parts to replace those damaged in unloading
5. Sales tax on purchase price
6. Special foundation
Costs related to used printing press:
7. Fees paid to attorney to review purchase agreement
8. Freight
9. Installation
10. Repair of damage incurred in reconditioning the press
11. Replacement of worn-out parts
12. Vandalism repairs during installation
a. Indicate which costs incurred in acquiring the new printing
press should be debited to the asset account.
b. Indicate which costs incurred in acquiring the used printing
press should be debited to the asset account.
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