Cost of the Tangible Asset Land Purchase Price Legal Fees Survey Fees Title Search Fees Broker Commissions Cost of the Tangible Asset Buildings Purchase Price Construction Cost Legal Fees Appraisal Fees Architect Fees Broker Commissions Equipment Capitalized cost of the asset Purchase Price Construction Cost Sales Taxes Transportation Costs Installation Costs Demolition, renovation, or repair costs to get the asset ready for its intended use are also capitalized Capitalized costs = All costs for acquiring and preparing tangible asset for use Knowledge Check 01 Silver Company purchased a machine for use in the business. The purchase price was $55,000 and the related sales tax totaled $500. Sliver paid $1,000 to have the machine delivered to its factory and $2,000 to have it assembled. Over the five-year life of the machine, maintenance cost of $800 will be incurred annually. What is the capitalized cost of this asset? -0:00 1x S-

Cost of the Tangible Asset Land Purchase Price Legal Fees Survey Fees Title Search Fees Broker Commissions Cost of the Tangible Asset Buildings Purchase Price Construction Cost Legal Fees Appraisal Fees Architect Fees Broker Commissions Equipment Capitalized cost of the asset Purchase Price Construction Cost Sales Taxes Transportation Costs Installation Costs Demolition, renovation, or repair costs to get the asset ready for its intended use are also capitalized Capitalized costs = All costs for acquiring and preparing tangible asset for use Knowledge Check 01 Silver Company purchased a machine for use in the business. The purchase price was $55,000 and the related sales tax totaled $500. Sliver paid $1,000 to have the machine delivered to its factory and $2,000 to have it assembled. Over the five-year life of the machine, maintenance cost of $800 will be incurred annually. What is the capitalized cost of this asset? -0:00 1x S-

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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Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here. New Office Equipment 1. List price: $42,600; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $880. 3. Installation: $400. 4. Cost to repair damage during unloading: $630. 5. Routine maintenance cost after eight months: $150. Basket Purchase of Copier, Computer, and Scanner for $52,500 with Fair Market Values 1. Copier, $23,421. 2. Computer, $12,027. 3. Scanner, $27,852. Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $83,800. 2. Demolition of building, $4,760. 3. Lumber sold from old building, $1,780. 4. Grading in preparation for new building, $7,900. 5. Construction of new building, $279,000.
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Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented her New Office Equipment 1. List price: $40,300; terms: 2/10, n/30, paid within the discount period. 2. Transportation-in: $740. 3. Installation: $470. 4. Cost to repair damage during unloading: $661. 5. Routine maintenance cost after eight months: $110. Basket Purchase of Copier, Computer, and Scanner for $50,100 with Fair Market Values 1. Copier, $23,556. 2. Computer, $11,476. 3. Scanner, $25,368. Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $81,200. 2. Demolition of building, $5.200. 3. Lumber sold from old building, $2,440. 4. Grading in preparation for new building, $9.200. 5. Construction of new bullding, $231,000. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts. nete Total
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