Acquisition Cost of Long-Lived Asset The following data relate to a firm's purchase of a machine used in the manufacture of its product: Invoice price $26,000 Applicable sales tax 1,800 Cash discount taken for prompt payment 1,000 Freight paid Cost of insurance coverage on machine while in transit 725 Installation costs 1,600 Testing and adjusting costs 1,075 Repair of damages to machine caused by the firm's employees 1,150 Prepaid maintenance contract for first year of machine's use 900 860 Determine the acquisition cost of the machine. Acquisition Cost = $ 0 Question 2 incomplete answer Marked out of 1.50 P Flag question Revision of Depreciation On January 2, 2012, Mosler, Inc. purchased equipment for $156,000. The equipment was expected to have a $15,000 salvage value at the end of its estimated six-year useful life. Straight-line depreciation has been recorded. Before adjusting the accounts for 2016, Mosler decided that the useful life of the equipment should be extended by two years and the salvage value decreased to $13,000, a. Prepare a journal entry to record depreciation expense on the equipment for 2016. Round your answer to the nearest dollar, General Journal Debit Credit Dec. 31 0 0 e To record depreciation expense. b. What is the book value of the equipment at the end of 2016 (after recording the depreciation expense for 2016) Book Value at year ended December 31, 2016: $ 0 Please answer all parts of the question eBook F Question 3 Incomplete answer Marked out of 1.00 P Flag question Impairment Loss On July 1, 2012, Okin Company purchased equipment for $255,000; the estimated useful life was 10 years and the expected salvage value was $25,000. Straight-line depreciation is used. On July 1, 2016, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Okin evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be $125,000 a. Is the equipment impaired at July 1, 2016? b. If the equipment is impaired at July 1, 2016, calculate the amount of the impairment loss. Impairment loss - $ 0 c. If the equippment is impaired at July 1, 2016, prepare the journal entry to record the impairment loss. General Journal Debit Credit July 1 0 0 0 To record impairment loss on equipment Please answer all parts of the question eBook Question 4 Not yet answered Print Marked out of 1.00 P Flag question Revenue and Capital Expenditures Indicate whether each of the following expenditures is a revenue expenditure or a capital expenditure for Linda Company a. Paid $300 to replace a truck windshield that was cracked by a stone thrown up by another vehicle while the truck was being used to make a delivery. b. Paid 510 for a "No Smoking" sign for the conference room c. Paid $900 to add a hard disk to an employee's computer, d. Paid $25 for a dust cover for a computer printer, e Paid 5280 to replace a cracked windshield on a used truck that was just purchased for company use. The company bought the truck knowing the windshield was cracked, Paid $750 for a building permit from the city for a storage shed the company is going to have built
