Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please help me fill in the yellow. List Price Less Discount: Freight Cost Specialty Fees Total Cost.. This is the information to help

Can you please help me fill in the yellow.

List Price

Less Discount:

Freight Cost

Specialty Fees

Total Cost..


This is the information to help with the problem that I was given, thank you


This problem will work through the costs that are eligible to be capitalized when an asset is purchased.

This amount will then determine the starting amount for depreciation expense as the asset is depreciated over a period of time based on the depreciation method chosen by the company. 


image text in transcribed FileHomeInsertDrawPage LayoutFormulasDataReviewViewHelpCalibri- 12 - A" A "29 Wrap TextGeneralPasteBIU-Merge & Center *$ ~ % 7 68 28ConditicFormattiClipboardFontAlignmentNumberG11BG1 4.5 Determining the total costs to include to capitalize an asset.Points: 4 items @ 2 pts. each :Directions: Determine the amount to be capitalized in the asset account for the purchaseof the truck5 Background Information: Donald purchased a moving truck to move Micky to Alaska. The truck6 had a list price of $150,000. Donald was able to negotiate a 3.25% because he was able to pay cash for the purchase7 The truck needed shipped and the freight cost were $3,000. The specialist fee for the transaction8 |was $1,800. Donald is paying someone $45,000 to load the truck and move Mickey. He also purchased9 a $10,000 insurance policy. The truck has an expected life of 6 years with a salvage value of $8,0001012 Costs that are to be capitalized:13List Price14Less: Discount15 Freight Cost16Specialist Fee17 Total Costs181920 Helpful Resources21Problem 4.1 Problem 4.2 | Problem 4.3"Problem 4.4Problem 4.5Problem 4.6Ready

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

25th edition

978-1285069609, 1285069609, 978-1133607601

More Books

Students also viewed these Accounting questions