Question
Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase: Purchase price $4,500,000 Cost to
Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase:
- Purchase price $4,500,000
- Cost to bring boat to production facility $25,000
- Yearly insurance cost $25,000
- Annual maintenance cost of $30,000
- Received 8% discount on sales price
Determine the acquisition cost of the boat, and record the journal entry needed.
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Cornerstones of Managerial Accounting
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
2nd Canadian edition
978-0176721237, 978-0176530884
