Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE HELP ASAPP!! ive been getting this question wrong Nash Co, recently installed some new computer equipment, To prepare for the installation, Nash had some

PLEASE HELP ASAPP!! ive been getting this question wrong image text in transcribed
Nash Co, recently installed some new computer equipment, To prepare for the installation, Nash had some electrical work done in what was to become the server room, costing $20,600. The invoice price of the server equipment was $200,000. Three printers were also purchased at a cost of $1,900 each. The software for the system was an additional $46,200. The server equipment was believed to have a uscful life of eight years, but due to the heavy anticipated usage, the printers were expected to have only a four-year useful life. The software to run the system was estimated to require a complete upgrade in five years to avoid obsolescence. Additionally, it cost $12.600 for delivery. All of the above costs were subject to a 6% non-refundable provincial sales tax. During the installation, a training course was conducted for the staff that would be using the new equipment, at a cost of $9,550. Assume that Nash follows IFRS, and that any allocation of common costs is done to the nearest 1%(e,8,80%,6%,14%). (b) Assume that Nash decides to capitalize the following components of the computer system: server equipment, printers, and software. Calculate the amount to be capitalized for each of these asset groups, (Round percentage to 0 decimai places, e.s. 52% and final answers to 0 decimal ploces, es. 5,275 .)

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

Latest Certified Quality Auditor Certification Actual Questions

Authors: Pass For Life

1st Edition

108127705X, 978-1081277055

More Books

Students also viewed these Accounting questions