Question
QUESTION 10 On September 28, Reeve Incorporated purchased equipment with a purchase price of $39,787 plus 5% sales tax. Shipping terms were FOB Shipping Point
QUESTION 10
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On September 28, Reeve Incorporated purchased equipment with a purchase price of $39,787 plus 5% sales tax. Shipping terms were FOB Shipping Point and shipping charges were $265. Installation was completed, and the new equipment was placed in service on October 1. Installation costs totaled $935. The shipping and installation costs were paid for in cash on September 28. The equipment purchase price, including sales tax, was paid for by issuing a 120 day 6% Note Payable on October 1. Based on past experience,the equipment is expected to have a useful life of 7 years, at which time it will have an estimated worth of $4,128. The equipment will be depreciated using the Straight Line method.
Assuming a 360-day year for your calculation, what is the Accrued Interest Expense on the Note on October 31?
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3 1/2 IRS Audit Red Flags That Trigger 99% Of All IRS Audits Tax Houdini How To Cut Taxes Without Provoking An Audit
Authors: Dean Q Wynn, Sam L Milledge, Altaf Adam, Samuell L Milledge II, Eric T McFerren
1st Edition
1985081199, 978-1985081192
