Buck Company purchased a computer and a desk for $9,000 cash. An appraiser determined the fair market value of computer to be $3,000 and the desk to be $7,000. Based on this information, the recorded cost of the computer is $ and the recorded cost of the desk is $. (Enter your answers as whole numbers.)
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- A company owner has asked his accountant to research the photocopier equipment available from vendors, and to recommend the two best equipment alternatives. The company owner will decide on one piece of equipment topurchase. The fee charged for the accountant’s research was $500. The accountant’s report produced the following information: Photocopier (A) Photocopier (B) Initial cost, including installation $6,500 $ 6,000 Economic life 5 years 5 years Scrap value at end of economic life -0- -0- Initial training cost $ 500 $ 700 Annual maintenance $ 400 $ 300 Annual wage cost $12,500 $12,500 REQUIRED 1. Which photocopier should the company owner choose? Why? 2. The company owner requested your help in preparing the coming year company budget. Please, guide him to the best method and appropriate type from your perspective.Barton Brick purchased three machines at a total cost of $480,000. An appraiser assigned the following fair market values to the machines: Machine X $300,000; Machine Y $200,000; and Machine Z $100,000. The cost that should be assigned to the account of machine X, Y, and Z, respectively, are a. $160,000; $160,000; $160,000 b. $240,000; $160,000; $80,000 c. $300,000; $200,000; $100,000 d. Some other amountsAnchor Company purchased a manufacturing machine with a list price of $88,000 and received a 2% cash discount on the purchase. The machine was delivered under terms free on board (FOB) shipping point, and transportation costs amounted to $2,800. Anchor paid $3,900 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $5,000 for the first year of operations. What is the cost of the machine? Multiple Choice O O O O $92,940 $97,940 $89,040 $86,240
- Granite Company purchased a machine costing $121,000, terms 2/10, n/30. The machine was shipped FOB shipping point and freight charges were $2,100. The machine requires special mounting and wiring connections costing $10,100. When installing the machine, $1,600 in damages occurred. Compute the cost recorded for this machine assuming Granite paid within the discount period.Hansen Supermarkets purchased a radio frequency identification (RFID) system for one of its stores at a cost of $150,000. Hansen determined that the system had an expected life of seven years (or 50,000,000 items scanned) and an expected residual value of $6,600. Required: 1. Determine the amount of depreciation expense for the first and second years of the system's life using the: a. Straight-line method. Round your answer to the nearest whole dollar, and use the rounded amount for subsequent calculations. Depreciation expense: $ per year b. Double-declining-balance method: (Round your answers to the nearest whole dollar and do not round intermediate calculations.) Depreciation Expense Year 1 Year 2 2. If the number of items scanned the first and second years were 7,200,000 and 8,150,000, respectively, compute the amount of depreciation expense for the first and second years of the system's life using the units-of-production depreciation method. Round your answers to the nearest whole…Laramie Corporation has acquired a property that included both land and a building for $590,000. The corporation hired an appraiser who has determined that the market value of the land is $350,000 and that of the building is $470,000. At what amount should the corporation record the cost of the building? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
- Kegler Bowling buys scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $20,000. Additional costs are $4,000 for delivery and $13,700 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,850. What is the total recorded cost of the scorekeeping equipment?A city has purchased a new asphalt paving machine for $300,000.The city comptroller states that the machine will be depreciatedusing a stright line method. At the end of 8 years, the machinewill be sold with an expected salvage value of 60,000.a. Determine the function V = f(t) which expresses the bookvalue of the machine V as a function of its age t.b. What is the book value expected to be when the machine is 6years old?Cyber Manufacturing purchased a complete video borescope system for applications that require work in places where eyes cannot see. The purchase price was $18,000, shipping and delivery was $300, installation cost was $1200, tax recovery period was 7 years, estimated useful life was 10 years, salvage value was nil, and annual operating cost was $45,000 per year. For tax depreciation purposes, what are the values of B, S, and n that should be used in depreciating the asset?
- A company owner has asked his accountant to research the photocopier equipment available from vendors, and to recommend the two best equipment alternatives. The company owner will decide on one piece of equipment to purchase. The fee charged for the accountant’s research was $500. The accountant’s report produced the following information: Photocopier (A) Photocopier (B) Initial cost, including installation $6,500 $ 6,000 Economic life 5 years 5 years Scrap value at end of economic life -0- -0- Initial training cost $ 500 $ 700 Annual maintenance $ 400 $ 300 Annual wage cost $12,500 $12,500 REQUIRED Which photocopier should the company owner choose? Why? The company owner requested your help in preparing the coming year company budget. Please, guide him to the best method and appropriate type from your perspective. Evaluation and Grading: Your answers would be evaluated and graded based on: Coverage…Whole Grain Bakery purchases an industrial bread machine for $30,000. In addition to the purchase price, the company makes the following expenditures: freight, $2,000; installation, $4,000; testing, $1,500; and property tax on the machine for the first year, $600. What is the initial cost of the bread machine?Rizio Company purchases a machine for $10,000, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $100 discount. Transportation costs of $226 were paid by Rizio. The machine required mounting and power connections costing $691. Another $326 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $365 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded