Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment 1. List
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment 1. List price: $36,100; terms: 2/10 n/30; paid within discount period. 2. Transportation-in: $800. 3. Installation: $600 4. Cost to repair damage during unloading: $636. 5. Routine maintenance cost after eight months: $140. Basket Purchase of Copier, Computer, and Scanner for $48,900 with Fair Market Values 1. Copier, $23,560 2. Computer, $7,657 3. Scanner. $27,683 Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $84,800 2. Demolition of building, $4,720. 3. Lumber sold from old building, $2,070. 4. Grading in preparation for new building, $8,400. 5. Construction of new building, $240,000 Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts. Asset Allocated Costs Total Required In each of these cases, determine the amount of cost to be capitalized in Asset Allocated Costs Total Office equipment Basket purchase: Copier Computer Scanner Total cost to be capitalized Land and building: Cost of land Construction costs Total cost to be capitalized
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started