Question
Question {8} Brew Inc. purchases a used bottling line for $100,000 cash. At the time of acquisition, the bottling line is 5 yeafs ofd
Question
{8}
\ Brew Inc. purchases a used bottling line for
$100,000
cash. At the time of acquisition, the bottling line is 5 yeafs ofd and Brew Inc. estimates it has a futther\ useful life of 10 years. At that point, it will have a scrap value of $1,000. How should the company record the acquisition of this plant, property, and\ tquiphtent (PPE) asset?\ Debit: PPE at cost
$150,000
, Credit: Accumulated depreciation
$49,000
, Credit: Cash
$100,000
,\ Credit: gain (PgL) on acquisition 1\ Debit: PPE at cost
$150,000
, Credit: Accumulated depreciation
$50,000
, Credit: Cash
$100,000
\ Debit, Ppe at cost $99,000, Debit: Loss on acquisition, Credit: Cash
$100,000
, Credit: Gain on\ acquisition.\ Debit PPE at cost 100,000, Credit, Cash 100,000.
Brew inc. purchases a used bottling line for $100,000 cash. At the time of acquisition, the bottling line is 5 yeafs ofd and Brew inc. estimates it has a further useful lffe of 10 years. At that point, it will have a scrap value of $1,000. How should the company record the acquisition of this plant, property, and equipment (PPE) asset? Debit: PPE at cost $150,000, Credit: Accumulated depreciation $49,000, Credit Cash $100,000, Credit: gain (PgL) on acquisition Debit: PPE at cost $150,000, Gredit: Accumulated depreciation $50,000, Credit: Cash $100,000 Debit: PPE at cost \$99,000, Debit: Loss on acquisition, Credit: Cash $100,000, Credit: Gain on acquisition. Debit PPE at cost 100,000, Credit: Cash 100,000
Question
{8}
\ Brew Inc. purchases a used bottling line for
$100,000
cash. At the time of acquisition, the bottling line is 5 yeafs ofd and Brew Inc. estimates it has a futther\ useful life of 10 years. At that point, it will have a scrap value of $1,000. How should the company record the acquisition of this plant, property, and\ tquiphtent (PPE) asset?\ Debit: PPE at cost
$150,000
, Credit: Accumulated depreciation
$49,000
, Credit: Cash
$100,000
,\ Credit: gain (PgL) on acquisition 1\ Debit: PPE at cost
$150,000
, Credit: Accumulated depreciation
$50,000
, Credit: Cash
$100,000
\ Debit, Ppe at cost $99,000, Debit: Loss on acquisition, Credit: Cash
$100,000
, Credit: Gain on\ acquisition.\ Debit PPE at cost 100,000, Credit, Cash 100,000.
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