The following are costs related to the purchase of a second-hand piece of equipment. Required: Indicate with an 'X' in the appropriate column whether the expenditure should be included in the cost of the asset. Include in theNot included Asset totalIn the Asset TotalDescription of cost expenditure Freight Installation Repair of vandalism during installation Replacement of worn-out parts at time of purchase Repair of damage incurred in reconditioning the equipment Fees paid to attorney to review purchase agreement B Computer equipment that was originally purchased for $ 170,000 and now has an accumulated depreciation balance of $ 130,000 is sold for cash of $ 60,000 Total $ 360,000 Required: Record the sale of the computer equipment DateAccount DescriptionDebitCredit Depreciatio expenses Accumulated depreciation

The costs which are assigned to a fixed assets are purchase cost and other related costs which are…

Answered: The following are costs related to the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are costs related to the purchase of a second-hand piece of equipment.
Required: Indicate with an 'X' in the appropriate column whether the expenditure should be included in the cost of the asset.

Include in the	Not included
Asset total	In the Asset Total	Description of cost expenditure
		Freight
		Installation
		Repair of vandalism during installation
		Replacement of worn-out parts at time of purchase
		Repair of damage incurred in reconditioning the equipment
		Fees paid to attorney to review purchase agreement


B
Computer equipment that was originally purchased for		$ 170,000
and now has an accumulated depreciation balance of		$ 130,000
is sold for cash of				$ 60,000
			Total	$ 360,000
Required: Record the sale of the computer equipment

Date	Account Description	Debit	Credit
	Depreciatio expenses
	Accumulated depreciation

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