![Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)](https://www.bartleby.com/isbn_cover_images/9780134833118/9780134833118_largeCoverImage.gif)
Determining Acquisition Cost. Haply, Inc. incurred the following expenditures when acquiring a new assembly machine:
Price | $175,000 |
Sales tax | 10,500 |
Delivery charges | 1,000 |
Installation cost | 2,500 |
Additionally, Haply sold its old assembly machine for $500. What is the acquisition cost of the new assembly machine?
![Check Mark](/static/check-mark.png)
Trending nowThis is a popular solution!
Learn your wayIncludes step-by-step video
![Blurred answer](/static/blurred-answer.jpg)
Chapter 11 Solutions
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
Additional Business Textbook Solutions
Horngren's Accounting (12th Edition)
Financial Accounting, Student Value Edition (4th Edition)
Managerial Accounting (4th Edition)
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Principles of Accounting Volume 1
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
- purchase. An independent appraiser valued the machines as shown below: Clintwood manufacturing bought three used machines in a KD226,000 lump-sum 4. Machine No. 1 2 3 Appraised Value KD 84,000 127,200 28,800 a. What is the individual cost of each machine? b. Immediately after making this purchase, Clintwood sold machine 2 for its appraised value. Journalize the sale of machine 2.arrow_forwardXY Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List Price 152,000Trade discounts and rebates taken 56,000Installation and assembly cost 3,200 Initial delivery and handling cost 6,400Purchase Discount 2% What is the acquisition cost of the new computer?arrow_forwardJosiah Co acquired a new machine. Details of the acquisition are as follows: Purchase price including VAT 1,568,000 Cost of water device to keep machine cool 8,000 Cost of safety rail and platform surrounding machine 12,000 Installation cost, including site preparation and assembling 20,000 Fees paid to consultants for advice on acquisition of the machinery 13,000 Present value of the estimated dismantling cost of the new machine 10,000 Repair cost of the machine damaged while in the process of installation 5,000 Loss on premature retirement-old machine 18,000 Other nonrefundable sales tax 13,000 Cost of training for personnel who will use the machine 25,000 Cost of removing old machine 10,000 Determine the cost of the Machineryarrow_forward
- DELIBIRD Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List price P152,000 Trade discounts and rebates taken 56,000 Installation and assembly cost 3,200 Initial delivery and handling cost 6,400 Purchase discount 2% What is the acquisition cost of the new computer? a. 160,600 b. 103,680 c. 105,680 d. 94,080arrow_forwardBroed Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List price P152,000 Trade discounts and rebates taken 56,000 Installation and assembly cost 3,200 Initial delivery and handling cost 6,400 Purchase discount 2% What is the acquisition cost of the new computer? a. 94,080 b. 103,680 c. 160,600 d. 105,680arrow_forwardDELIBIRD Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List price P152,000 Trade discounts and rebates taken 56,000 Installation and assembly cost 3,200 Initial delivery and handling cost 6,400 Purchase discount 2% What is the acquisition cost of the new computer? 105,680 94,080 103,680 160,600arrow_forward
- Clutch Company purchased equipment and incurred the following costs as part of the purchase: Purchase price $10,000 Transportation costs $500 Repair for damage incurred during installation $250 Installation costs $550 Sales tax $750 What amount should Clutch capitalize as the cost of the equipment? 12,050 11,800 11,000 10,750arrow_forwardABC Company purchased an asset which has the following information: 1. List price of $60000 2. Sales tax of $ 3000 3. Freight charges of $1500 4. Installation charges of $5000 5. Advertising charges of $10000 6. Interest charges of $2000 Requirement: required: A. Which of the above payments must be included in the totala acquisitioncost. B. Calculate the total acquisition cost of the asset.arrow_forwardWhat is the total amount that Bryant Inc. should expense during the year (versus the company capitalizing the costs): 1. Purchased the cost of a patent from another company for $165,500. 2. Incurred $278,900 of Research and Development Costs. 3. Internal costs incurred to create a patent for $105,490. 4. Purchased a tradename for $97,300. 5. Goodwill from purchasing another division for $205,800.arrow_forward
- The following data relate to a firm's purchase of a machine used in the manufacture of its product: Invoice price Applicable sales tax Cash discount taken for prompt payment Freight paid Cost of insurance coverage on machine while in transit Installation costs Testing and adjusting costs Repair of damages to machine caused by the firm's employees Prepaid maintenance contract for first year of machine's use $30,000 2,000 400 260 125 3,000 475 750 300 Determine the acquisition cost of the machine. Acquisition Cost $ 0arrow_forwardAcquisition Cost of Long-Lived Asset The following data relate to a firm’s purchase of a machine used in the manufacture of its product: Invoice price $34,000 Applicable sales tax 2,000 Cash discount taken for prompt payment 400 Freight paid 260 Cost of insurance coverage on machine while in transit 125 Installation costs 2,000 Testing and adjusting costs 475 Repair of damages to machine caused by the firm’s employees 750 Prepaid maintenance contract for first year of machine’s use 400 Determine the acquisition cost of the machine.arrow_forwardABC Company purchased an asset which has the following information: 1. List price of $60000 2. Sales tax of $ 3000 3. Freight charges of $1500 4. Installation charges of $5000 5. Advertising charges of $10000 6. Interest charges of $2000 Requirement: required: A. Which of the above payments must be included in the totala acquisitioncost. B. Calculate the total acquisition cost of the asset. check_circle Expert Answer thumb_up thumb_down Step 1 The cost of the asset includes all those cost which makes the asset relevant for it's intended use. These expenditure include the non refundable taxes, import duties, freight charges and installation The cost of the asset excludes those expenditures for promotional activities, administrative and other overhead expenditures, expenditure on captive consumption, expenditure incurred for opening and inaugurating new facilities. In this case advertising expenditure is excluded and Interest depends on the various factors…arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)