Massive Corporation Co. sells and delivers various goods to customers using self driving cars.
(1)During the year a new windshield is installed for $425, new tires are put on for $1,600 and a custom made cargo sorting and cooling system is installed in one of the vehicles for $10,250. How should the three purchases be accounted for - are they an expense or capital?
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(2) A different vehicle from the above is sold to a local business for $12,300 cash on November 6/21 The original cost on the vehicle was $78,500 and accumulated amortization as of the date of disposal was $69,300. Prepare the entry to record the disposal of the vehicle - description is not required.
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Answer rating: 100% (QA)

1 The three purchases should be accounted for as follows The new windshield and new tires are consid... View the full answer