Question
Columbia Company, which manufactures machine tools, had the following transactions related to plant assets in 2014. Instructions (a) At what amount should Columbia record the
Columbia Company, which manufactures machine tools, had the following transactions related to plant assets in 2014.
Instructions
(a) At what amount should Columbia record the acquisition cost of the machine?
(b) What amount of capitalized interest should Columbia include in the cost of the warehouse?
(c) On July 1, 2016, Columbia decides to outsource its stamping operation to Medek, Inc. As part of this plan, Columbia sells the machine (and the platform) to Medek, Inc. for $7,000. What is the impact of this disposal on Columbia's 2016 income before taxes.
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