Required Determine the capitalized cost of the asset.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Invoice price
|Shipping cost
Installation cost
Cost to tear down old swing
Insurance to cover 2019 and 2020
Necessary repair during installation
261,100
1,100
6,000
200
4,000
2,000
Required
1 Determine the capitalized cost of the asset.
Туре of Cost
$ Value of Cost
Page 1
2 Determine the proper treatment for the following expenditures.
Key
Capitalize
Expense
Treatment
Oil the gears of the swing each month, $25
Installed new swing seats in year 2, $22,000
Replaced the motor in year 3, $32,000
Repainted the posts in year 3, $600
Spray the swing seats with sanitizer each week, $45
Repaired broken exterior light on two of the swings, $175
Transcribed Image Text:Invoice price |Shipping cost Installation cost Cost to tear down old swing Insurance to cover 2019 and 2020 Necessary repair during installation 261,100 1,100 6,000 200 4,000 2,000 Required 1 Determine the capitalized cost of the asset. Туре of Cost $ Value of Cost Page 1 2 Determine the proper treatment for the following expenditures. Key Capitalize Expense Treatment Oil the gears of the swing each month, $25 Installed new swing seats in year 2, $22,000 Replaced the motor in year 3, $32,000 Repainted the posts in year 3, $600 Spray the swing seats with sanitizer each week, $45 Repaired broken exterior light on two of the swings, $175
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