Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need these two answered On November 1, Beer Inc purchased a new machine for $200,000. The company paid $5,900 to have the machine delivered to

need these two answered

On November 1, Beer Inc purchased a new machine for $200,000. The company paid $5,900 to have the machine delivered to its shop and $2,800 to install the machine. In addition, Beer Inc paid $1,800 of interest to borrow money from the bank to purchase the machinery, and $5,000 to insure the machine for the first year of use. Beer Inc also paid $8,000 for improvements to the machine that are expected to enhance its efficiency.

What total amount will the company capitalize on its balance sheet for this machine asset?

Rosenbaum Ltd has equipment with a historical cost of $33,000 and accumulated depreciation of $15,000. If Rosenbaum Ltd sells the equipment and receives $16,200 cash for the sale, what will be the effect of the sale on Rosenbaum Ltd's net income (ignoring taxes)? If this transaction will add to the company's net income, make your answer positive. If this transaction will reduce the company's net income, make your answer negative.

image text in transcribed
Question 1 of 18 On November 1, Beer Inc purchased a new machine for $200,000. The company paid $5,900 to have the machine delivered to its shop and $2,800 to install the machine. In addition, Beer inc paid $1,800 of interest to borrow money from the bank to purchase the machinery, and $5,000 to insure the machine for th first year of use. Beer inc also paid $8,000 for improvements to the machine that are expected to enhance its efficiency. What total amount will the company capitalize on its balance sheet for this machine asset? Question 2 of 18 Rosenbaum Ltd has equipment with a historical cost of $33,000 and accumulated depreciation of $15,000, If Rosenbaum Ltd sells the equipment and receives $16,200 cash for the sale, what will be the effect of the sale on Rosenbaum Ltd's net income (ignoring taxes)? If this transaction will add to the company's net income, make your answer positive. If this transaction will teduce the company's net income, make your answer negative. Effect on Net income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions

Question

2. What is the magnitude of a projection = (7, 3) on = (4, 2)? [2K]

Answered: 1 week ago