Exercise 8-1 (Static) Cost of plant assets LO C1

Rizio Co. purchases a machine for $12,500, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $250 discount. Transportation costs of $360 were paid by Rizio. The machine required mounting and power connections costing $895. Another $475 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $180 worth of repairs were made.

Complete the below table to calculatethe cost recorded for this machine.

Amount Included in Cost of Equipment

Invoice price of machine

Net purchase price

Total cost to be recorded

Exercise 8-3 (Static) Lump-sum purchase of plant assets LO C1

Rodriguez Company pays$395,380 for real estate with land, land improvements, and a building. Land is appraised at $157,040; land improvements are appraised at $58,890; and the building is appraised at $176,670.

1.Allocate the total cost among the three assets.

2.Prepare the journal entry to record the purchase.

Complet this question by entering your answers in the tabs below.

• Required 1
• Required 2

Allocate the total cost among the three assets.

Appraised Value Percent of Total Appraised Value. x Total Cost of Acquisition = Apportioned Cost

Land

Land improvements

Building

Totals

Journal entry worksheet

(A)Record the costs of lump-sum purchase.

• Record the costs of lump-sum purchase.

Note: Enter debits before credits.

Transaction. General Journal Debit Credit

Use the following information for the Exercises below. (Static)

[The following information applies to the questions displayed below.]

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product.

Exercise 8-4 (Static) Straight-line depreciation LO P1

Determine the machine's second-year depreciation and year end book value under the straight-line method.

Straight-Line Depreciation

Choose Numerator Choose Denominator = Annual Depreciation Expense

/ = Depreciation Expense

/ =

Year 2 depreciation

Year end book value (Year 2)

Use the following information for the Exercises below. (Static)

[The following information applies to the questions displayed below.]

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product.

Exercise 8-6 (Static) Double-declining-balance depreciation LO P1

Determine the machine's second-year depreciation using the double-declining-balance method.

Double- declining- balance Depreciation

ChoosE FACTOR X Choose Factor % = Annual Depreciation Expense

= Depreciation expense

First year's depreciation x =$

Second year's depreciation x =$