Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? A. $60,600 B. $66,100 C. $54,000

A5

6.) A contractor imported a bulldozer for his job, paying P250,000 to the manufacturer. Freight and insurance charges amounted to P18,000; custom's broker's fees, P8,500; taxes, permits, and other initial expenses, P25,000. If the contractor estimates life of the bulldozer to be 10 years, with a salvage value of P20,000, determine the book value at the end of six years, using the: [a] straight line formula [b] sinking fund formula at 8% [c] declining balance method [d] SYD method

1. On 1 April 20x1, ABC Co. bought a new lorry and made the following payments in relation to it: Costs as per supplier’s list                 $120,000 Less: Agreed discount                       10,000          110,000 Delivery charge                                                        1,000 Installation charge                                                    4,000  Maintenance charge                                                 4,000 An additional component to increase capacity          3,000 Spare parts                                                                  3,500             Total                                                               125,500           The lorry is depreciated on a straight-line basis over a four-year life and the estimated residual value $38,000. ABC Co. prepares their accounts on 31 December each year, the company policy is to charge depreciation on a month for month basis. After exactly two years and three months, the lorry is out of…

MC Qu. 16-84 Donata Company purchased equipment for... Donata Company purchased equipment for $45,000 in December 20x1. The equipment is expected to generate $12,000 per year of additional revenue and incur $6,000 per year of additional cash expenses, beginning in 20x2. Under MACRS, depreciation in 20x2 will be $7,000. If the firm's income tax rate is 20%, the after-tax cash flow in 20x2 would be: Multiple Choice O O о $1,200. $2,200. $3,600. $6.200. None of the answers is correct.

CALCULATE DEPRECIATION ON A TRUCK WITH A NET BOOK VALUE OF 350,000 FOR 400,000. WITH A TAX WRITTEN DOEN VALUE OF $300,000

Suppose a new car is purchased for $41,357 and depreciates by 21% over the first year of ownership. Find the depreciation of the car over the first year. $… If the car is driven 12,870 miles in that year, what is the cost, in dollars per 100 miles driven, for depreciation? (Round your answer to the nearest cent.) …? Dollars per 100 miles

A2

Orion Flour Mills purchased a new machine and made the following expenditures:           Purchase price $ 66,000   Sales tax   5,550   Shipment of machine   910   Insurance on the machine for the first year   610   Installation of machine   1,820       The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.   Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Worthington Chandler purchased equipment for $40k. Sales tax on the purchase was $2400. Other costs incurred were freight charges of $600 repairs of $350 for damage during installation and installation costs of $675. What is the cost of the equupment? a.) 43,675 b.) 40k c.) 42,400 d.) 44,025