Question
Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here. New Office Equipment List price: $43,200;
Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here.
New Office Equipment
-
List price: $43,200; terms: 2/10, n/30; paid within the discount period.
-
Transportation-in: $720.
-
Installation: $490.
-
Cost to repair damage during unloading: $544.
-
Routine maintenance cost after eight months: $260.
Basket Purchase of Copier, Computer, and Scanner for $51,300 with Fair Market Values
-
Copier, $26,574.
-
Computer, $11,742.
-
Scanner, $23,484.
Land for New Warehouse with an Old Building Torn Down
-
Purchase price, $80,000.
-
Demolition of building, $5,280.
-
Lumber sold from old building, $1,260.
-
Grading in preparation for new building, $8,500.
-
Construction of new building, $261,000.
Required
In each of these cases, determine the amount of cost to be capitalized in the asset accounts.
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