Question 8 2 pts A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000, would have a cost basis of ○ $90,000 Ο $93,000 Ο $82,000 $85,000
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In this case, the costs to be included are the purchase price, overhaul costs, installation costs, and special acquisition fees. Show more…
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"The following data relate to a firm's purchase of a machine used in the manufacture of its product: Invoice price $20,000 Applicable sales tax 1,200 Cash discount taken for prompt payment 400 Freight paid 260 Cost of insurance coverage on machine while in transit 125 Installation costs ,000 Testing and adjusting costs 475 Repair of damages to machine caused by the firm's employees 550 Prepaid maintenance contract for first year of machines use 300 Determine the acquisition cost of the machine 23,510"
Aya Bianca I.
On 1 October 20X5, Dearing acquired a machine under the following terms: Hours $ Manufacturer's base price 1,050,000 Trade discount (applying to base price only) 20% Early settlement discount taken (on the payable amount of the base cost only) 5% Freight charges 30,000 Electrical installation cost 28,000 Staff training in use of machine 40,000 Pre-production testing 22,000 Purchase of a three-year maintenance contract 60,000 On 1 October 20X7, Dearing decided to upgrade the machine by adding new components at a cost of $200,000. This upgrade led to a reduction in the production time per unit of the goods being manufactured using the machine. What amount should be recognized under non-current assets as the cost of the machine? A $840,000 B $920,000 C $898,000 D $870,000
Madhur L.
Equipment was purchased for $144000. Freight charges amounted to $7000 and there was a cost of $19000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $36000 salvage value at the end of its 5-year useful life. Depreciation Expense each year using the straight-line method will be $26800. $23600. $21600. $34000.
Rahul M.
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