Boone Company purchased a piece of machinery by paying $18,000 cash. In addition to the purchase price, the company incurred $800 freight charges. The machine has an estimated useful life of 5 years and will require $600 for insurance over that period. Boone Company would record the cost of the machine at: a. $18,000 b. $18,800 c. $19,400 d. $18,200

ABC Ltd. Incurred the following costs related to the purchase of a machine: $10,500 Invoice price Insurance during transit Pouring cement slab on which the machine must be mounted Interest expense on debt used to buy the asset Shipping costs Annual service contract cost ö $14,600 $12,100 What is the amount capitalized to the balance sheet for the machine? $11,800 200 $13,600 1,000 2,500 100 300

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GRACE Co. recently acquired two items of equipment. Acquired a press at an invoice price of P5,000,000 subject to a 5% cash discount which was taken. Costs of freight and insurance during shipment were P50,000 and installation cost amounted to P200,000. The cost of testing the equipment is P50,000 while the administration cost has amounted to P30,000.  Acquired a welding machine at an invoice price of P3,000,000 subject to a 10% cash discount which was not taken. Additional welding supplies were acquired at a cost of P100,000.   Required: What is the total increase in the equipment account as a result of the transactions?

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Jamela Company acquired a welding machine on account with an invoice price of P5,000,000 subject to a cash discount of 10% which was not taken. Jamela Company incurred freight and insurance during shipment of P50,000 and testing and installation cost of P150,000. Welding supplies were acquired at a cost of P80,000.    The residual value is 10% of its total cost while its estimated useful life is 5 years.    What is the cost of the new welding machine? How much is the depreciable amount of the new welding machine?  How much is the annual depreciation using the straight line method?   Please include an explanation. Thank you!

ALPHA Company purchased equipment on 1/1/N with an invoice price of $80,000. Purchase taxes $16,000. Other costs incurred were freight costs, $1,100; installation wiring and foundation, $2,200; material and labor costs in testing equipment, $700; fire insurance policy for  the factory is, $1,400. The equipment is estimated to have a $5,000 salvage value at the end of its 5-year useful service life. Required: (a)​Compute the acquisition cost of the equipment.                         (b)​If the double-declining-balance method of depreciation was used for the machine, prepare the depreciation schedule for the full period.                                 (c) Based on which criteria companies choose the depreciation methods for their depreciable assets?

ALPHA Company purchased equipment on 1/1/N with an invoice price of $80,000. Purchase taxes $16,000. Other costs incurred were freight costs, $1,100; installation wiring and foundation, $2,200; material and labor costs in testing equipment, $700; fire insurance policy for  the factory is, $1,400. The equipment is estimated to have a $5,000 salvage value at the end of its 5-year useful service life. Required:  (b)    If the double-declining-balance method of depreciation was used for the machine, prepare the depreciation schedule for the full period.     Answer: Depreciation schedule:                                                                                       Year Beginning book  value Declining  balance rate Annual  depreciation expenses Accumulated  depreciation Book  value 2017               2018           2019             2020               2021

Jamela Company acquired a welding machine on account with an invoice price of P5,000,000 subject to a cash discount of 10% which was not taken. Jamela Company incurred freight and insurance during shipment of P50,000 and testing and installation cost of P150,000. Welding supplies were acquired at a cost of P80,000.  The residual value is 10% of its total cost while its estimated useful life is 5 years.  Question: What is the cost of the new welding machine? Please include explanation in each capitalizable costs.

Lax Company recently acquired two items of equipment. The transactions are described as follows: * * Acquired a press at an invoice price of P3,000,000 subject to a 5% cash discount which was taken. Costs of freight and insurance during shipment were P50,000 and installation cost amounted to P200,000. Acquired a welding machine at an invoice price of P2,000,000 subject to a 10% cash discount which was not taken. Additional welding supplies were acquired at a cost of P100,000. The increase in the equipment account as a result of the above transactions should be a. 4,900,000 b. 5,000,000 c. 5,100,000 d. 5,200,000.