Question

Listed below are costs (or discounts) to purchase or construct new plant assets. Indicate whether the...

Listed below are costs (or discounts) to purchase or construct new plant assets. Indicate whether the costs should be expensed or capitalized (included in the cost of the plant assets on the balance sheet.) For costs that should be, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet.

a. cost to install needed electrical lines in new building

b. cost to build a base of new equipment

c. insuarance on new building during construction phase

d. permit charges incurred by a delievery driver to transport new equipment to warehouse

e. sales tax on new equipment purchased

f. parking fees incured by the delivery truck that illegally parked when delivering new equipment

g. brookering fees incured to purchase new plant warehouse

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer is given below

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 6, 2019, Baxter Company purchased a site for a new manufacturing plant for $2,900,000....
On January 6, 2019, Baxter Company purchased a site for a new manufacturing plant for $2,900,000. At a cost of $18,500, it razed an existing facility (fair market value $250,000) and received $12,000 from its salvage. The company also paid $6,900 in attorney fees, $2,100 in inspection fees, and $1,400 for a permit to raze the facility. After the facility was torn down, the following costs were incurred: $55,400 for fill dirt for the site, $37,000 for leveling the site,...
Trinkle Company made several purchases of long-term assets during the year. The details of each purchase...
Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here. New Office Equipment List price: $44,200; terms: 2/10, n/30; paid within the discount period. Transportation-in: $770. Installation: $440. Cost to repair damage during unloading: $457. Routine maintenance cost after eight months: $190. Basket Purchase of Copier, Computer, and Scanner for $53,800 with Fair Market Values Copier, $27,864. Computer, $9,072. Scanner, $27,864. Land for New Warehouse with an Old Building Torn Down...
Crown acquired some land for the purpose of building a new storage facility for its large...
Crown acquired some land for the purpose of building a new storage facility for its large equipment. The following costs related to these plant assets were incurred in in 20Y3: Land purchase price - $150,000 Real estate broker’s commission on the sale of the land - $4,000 Land title transfer fees - $500 Cost to remove an old building that existed on the land - $8,000 Construction costs related to the new building - $330,000 Installation of a sprinkler system...
True/False 1.___ Almost all property, plant, and equipment (PP&E) is depreciated, which means that its cost...
True/False 1.___ Almost all property, plant, and equipment (PP&E) is depreciated, which means that its cost is spread over its useful life. 2. ____ PP&E is a long-term asset. 3. ____ If PP&E is found to be permanently impaired, a loss must be recorded. 4. ____ If an expenditure increases the useful life of an asset, it should be capitalized, not expensed. 5. ____ It does not matter how a company divides a basket purchase since all the assets will...
Trinkle Company made several purchases of long-term assets in 2018. The details of each purchase are...
Trinkle Company made several purchases of long-term assets in 2018. The details of each purchase are presented here. New Office Equipment 1. List price: $60,000; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $1,500. 3.   Installation: $2,500. 4.   Cost to repair damage during unloading: $650. 5.   Routine maintenance cost after eight months: $350. Basket Purchase of Copier, Computer, and Scanner for $30,000 with Fair Market Values 1.   Copier, $22,000. 2.   Computer, $10,000. 3.   Scanner, $8,000. Land for New...
Chapter 10 Acquisition and Disposition of Property, Plant and Equipment On July 1, 2018, Forward Corporation...
Chapter 10 Acquisition and Disposition of Property, Plant and Equipment On July 1, 2018, Forward Corporation purchased a parcel of land as a factory site for $185,000. An old building on the property was demolished and construction began on a new warehouse that was completed on October 15, 2018. Costs incurred on the construction project are listed below.                Cost of building construction…………………………………          $620,000                Title insurance…………………………………………………               1,500                Cost of constructing a driveway……………………………….               8,000                Legal fees to purchase...
Trinkle Company made several purchases of long-term assets in 2018. The details of each purchase are...
Trinkle Company made several purchases of long-term assets in 2018. The details of each purchase are presented here. New Office Equipment List price: $41,600; terms: 2/10, n/30; paid within the discount period. Transportation-in: $830. Installation: $540. Cost to repair damage during unloading: $510. Routine maintenance cost after eight months: $180. Basket Purchase of Copier, Computer, and Scanner for $48,100 with Fair Market Values Copier, $23,780. Computer, $6,380. Scanner, $27,840. Land for New Warehouse with an Old Building Torn Down Purchase...
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each...
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment List price: $37,400; terms: 2/10 n/30; paid within discount period. Transportation-in: $840. Installation: $480. Cost to repair damage during unloading: $694. Routine maintenance cost after six months: $150. Basket Purchase of Copier, Computer, and Scanner for $50,100 with Fair Market Values Copier, $24,764. Computer, $9,664. Scanner, $25,972. Land for New Warehouse with an Old Building Torn Down...
REQUIRED Indicate whether the following property, plant, and equipment related transactions increased (I), decreased (D), or...
REQUIRED Indicate whether the following property, plant, and equipment related transactions increased (I), decreased (D), or had no effect (NE) on the financial statement elements below. Cash Noncash Assets Liabilities Revenues / Gains Expenses /Losses a) Acquired a machine by issuing a 5%, 5- year, $100,000 note with no down payment. b) Incurred and paid annual interest cost of $40,000, including $8,000 of capitalized interest. c) Spent $40,000 to upgrade an existing building. The upgrades increased the original useful life...
Roosevelt Manufacturing recently purchased a new piece of equipment. The equipment was originally listed at a...
Roosevelt Manufacturing recently purchased a new piece of equipment. The equipment was originally listed at a price of $45,000, but Roosevelt negotiated the invoice price down to $40,000. In addition to the invoice price, Roosevelt paid sales tax of $2,000 on the purchase, costs to have the equipment shipped and installed at Roosevelt’s warehouse of $5,000, and insurance for the first year of operation of $4,000. What amount should Roosevelt capitalize on the balance sheet related to the equipment purchase?...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT