d=cesProblem 6-22A (Algo) Accounting for acquisition of assets, including a basket purchase LO 6-1Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here.New Office Equipment1. List price: $41,100; terms: 2/10, n/30; paid within the discount period.2. Transportation-In: $740.3. Installation: $470.4. Cost to repair damage during unloading: $624.5. Routine maintenance cost after eight months: $150.Basket Purchase of Copler, Computer, and Scanner for $53,500 with Fair Market Values1. Copier, $26,445.2. Computer, $9,030.3. Scanner, $29,025.Land for New Warehouse with an Old Building Torn Down1. Purchase price, $82,400.2. Demolition of building, $5,410.3. Lumber sold from old building, $2,210.4. Grading in preparation for new building, $9,500.5. Construction of new building, $217,000.RequiredIn each of these cases, determine the amount of cost to be capitalized in the asset accounts.AssetOffice equipmentBasket purchase:CopierComputerScannerTotal cost to be capitalizedLand and building:Cost of landConstruction costsTotal cost to be capitalizedAllocated CostsS$Total00

Assets are defined as the resources owned by the company that will benefit in running its business…

Problem 6-22A (Algo) Accounting for acquisition of assets, including a basket purchase LO 6-1 Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here. New Office Equipment 1. List price: $41,100; terms: 2/10, n/30; paid within the discount period. 2. Transportation-In: $740. 3. Installation: $470. 4. Cost to repair damage during unloading: $624. 5. Routine maintenance cost after eight months: $150. Basket Purchase of Copler, Computer, and Scanner for $53,500 with Fair Market Values 1. Copler, $26,445. 2. Computer, $9,030. 3. Scanner, $29,025. Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $82,400. 2. Demolition of building, $5,410. 3. Lumber sold from old building, $2,210. 4. Grading in preparation for new building, $9,500. 5. Construction of new building, $217,000. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

Problem 6-22A (Algo) Accounting for acquisition of assets, including a basket purchase LO 6-1 Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here. New Office Equipment 1. List price: $41,100; terms: 2/10, n/30; paid within the discount period. 2. Transportation-In: $740. 3. Installation: $470. 4. Cost to repair damage during unloading: $624. 5. Routine maintenance cost after eight months: $150. Basket Purchase of Copler, Computer, and Scanner for $53,500 with Fair Market Values 1. Copler, $26,445. 2. Computer, $9,030. 3. Scanner, $29,025. Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $82,400. 2. Demolition of building, $5,410. 3. Lumber sold from old building, $2,210. 4. Grading in preparation for new building, $9,500. 5. Construction of new building, $217,000. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter2: Asset And Liability Valuation And Income Recognition

Section: Chapter Questions

Problem 5QE

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