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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase:
• Purchase price $4,500,000
• Cost to bring boat to production facility $25,000
• Yearly insurance cost $25,000
Annual maintenance cost of $37,000
• Received 8% discount on sales price
A. Determine the acquisition cost of the boat.
B. Record the journal entry needed. If an amount box does not require an entry, leave it blank.
10
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