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Acquisition Cost Desert State University installed a HD video board with an invoice price of $5,000,000 in its football stadium. Desert State paid an additional $100,000 of delivery and installation costs relating to this board. Because this is one of the largest boards in the world, Desert State also installed ten 5-ton air conditioning units at a total cost of $120,000 to keep the board cool in the desert heat. Required: Determine the cost of the video board.

BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881
BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

Solutions

Chapter
Section
Chapter 7, Problem 30BE
Textbook Problem

Acquisition Cost

Desert State University installed a HD video board with an invoice price of $5,000,000 in its football stadium. Desert State paid an additional $100,000 of delivery and installation costs relating to this board. Because this is one of the largest boards in the world, Desert State also installed ten 5-ton air conditioning units at a total cost of $120,000 to keep the board cool in the desert heat.

Required:

Determine the cost of the video board.

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Chapter 7 Solutions

Cornerstones of Financial Accounting
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Ch. 7 - What accounting concepts should be considered when...Ch. 7 - What is the proper accounting for depreciation...Ch. 7 - How is the sale of equipment at an amount greater...Ch. 7 - What information does the fixed asset turnover...Ch. 7 - Describe the benefits that intangible assets...Ch. 7 - What factors should be considered when selecting...Ch. 7 - What basis underlies the computation of depletion?Ch. 7 - ( Appendix 7 A) What is an impairment of a fixed...Ch. 7 - Anniston Company purchased equipment and incurred...Ch. 7 - The cost principle requires that companies record...Ch. 7 - When depreciation is recorded each period, what...Ch. 7 - Refer to the information for Cox Inc. above. What...Ch. 7 - Refer to the information for Cox Inc. above. What...Ch. 7 - Refer to the information for Cox Inc. above. 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Depreciation Methods Clearcopy, a printing...Ch. 7 - Depreciation Methods Quick-as-Lightning, a...Ch. 7 - Inferring Original Cost Barton Construction...Ch. 7 - Choice Among Depreciation Methods Walnut Ridge...Ch. 7 - Revision of Depreciation On January 1, 2017,...Ch. 7 - Capital versus Revenue Expenditure Warrick Water...Ch. 7 - Expenditures After Acquisition The following...Ch. 7 - Expenditures After Acquisition Roanoke...Ch. 7 - Expenditures After Acquisition and Depreciation...Ch. 7 - Disposal of Fixed Asset Perfect Auto Rentals sold...Ch. 7 - Disposal of Fixed Asset Pacifica Manufacturing...Ch. 7 - Depreciation and Disposal of Fixed Assets Stanley...Ch. 7 - Analyze Fixed Assets Tabor Industries is a...Ch. 7 - Acquisition and Amortization of Intangible Assets...Ch. 7 - Balance Sheet Presentation The following...Ch. 7 - Amortization of Intangibles On January 1, 2019,...Ch. 7 - Depletion Rate Oxford Quarries purchased 45 acres...Ch. 7 - Depletion of Timber Bedford Ridge Development...Ch. 7 - 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Comparative Analysis: Under Armour, Inc., versus...Ch. 7 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT After...Ch. 7 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT After...Ch. 7 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT After...Ch. 7 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT After...

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