A company purchased a special purpose machine on August 1st of the previous year. It was installed and ready to run on January 1st of the current year. The following costs were incurred in the purchase and installation of the machine: Invoice price $1,200,000 Freight costs 6,000 Installation costs 64,000 Electrical and power connections 32,000 Repairs to correct damage during uncrating 12,000 Costs to adjust machine to appropriate specifications 56,000 Costs of spare parts for future use 108,000 Sales tax 70,500 Cost of special foundation required for installation 28,500 What is the cost of the machine? Amount____________________________
A company purchased a special purpose machine on August 1st of the previous year. It was installed and ready to run on January 1st of the current year. The following costs were incurred in the purchase and installation of the machine: Invoice price $1,200,000 Freight costs 6,000 Installation costs 64,000 Electrical and power connections 32,000 Repairs to correct damage during uncrating 12,000 Costs to adjust machine to appropriate specifications 56,000 Costs of spare parts for future use 108,000 Sales tax 70,500 Cost of special foundation required for installation 28,500 What is the cost of the machine? Amount____________________________
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 69APSA: A Cost of a Fixed Asset Mist City Car Wash purchased a new brushless car-washing machine for one of...
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Question
A company purchased a special purpose machine on August 1st of the previous
year. It was installed and ready to run on January 1st of the current year. The
following costs were incurred in the purchase and installation of the machine:
Invoice price $1,200,000
Freight costs 6,000
Installation costs 64,000
Electrical and power connections 32,000
Repairs to correct damage during uncrating 12,000
Costs to adjust machine to appropriate specifications 56,000
Costs of spare parts for future use 108,000
Sales tax 70,500
Cost of special foundation required for installation 28,500
What is the cost of the machine?
Amount____________________________
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