In 2020, Murphy Manufacturing Inc. acquired and placed in service a piece of machinery to manufacture interactive toys for dogs. The following costs were associated with the machinery: Purchase price from vendor$2,130,000 Tax on purchase price $150,000 Shipping/Delivery$20,000 Insurance for Shipping$5,000 Installation/Calibration$15,000 On-going support contract$10,000/year Routine annual cleaning$2,000/year 3b. They placed the order on 5/1/2020, it arrived at the plant on 6/15/2020, they paid the vendor on 6/30/2020, the installation and calibration were complete on 7/10/2020, and it was ready to use on 7/11/2020. What date do they start depreciating the asset?
In 2020, Murphy Manufacturing Inc. acquired and placed in service a piece of machinery to manufacture interactive toys for dogs. The following costs were associated with the machinery: Purchase price from vendor$2,130,000 Tax on purchase price $150,000 Shipping/Delivery$20,000 Insurance for Shipping$5,000 Installation/Calibration$15,000 On-going support contract$10,000/year Routine annual cleaning$2,000/year 3b. They placed the order on 5/1/2020, it arrived at the plant on 6/15/2020, they paid the vendor on 6/30/2020, the installation and calibration were complete on 7/10/2020, and it was ready to use on 7/11/2020. What date do they start depreciating the asset?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2020, Murphy Manufacturing Inc. acquired and placed in service a piece of machinery to manufacture interactive toys for dogs. The following costs were associated with the machinery:
- Purchase price from vendor$2,130,000
- Tax on purchase price $150,000
- Shipping/Delivery$20,000
- Insurance for Shipping$5,000
- Installation/Calibration$15,000
- On-going support contract$10,000/year
- Routine annual cleaning$2,000/year
3b. They placed the order on 5/1/2020, it arrived at the plant on 6/15/2020, they paid the vendor on 6/30/2020, the installation and calibration were complete on 7/10/2020, and it was ready to use on 7/11/2020. What date do they start depreciating the asset?
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