Question

A new machine with a purchase price of $88,588.00, with transportation costs of $7,887.00, installation costs...

A new machine with a purchase price of $88,588.00, with transportation costs of $7,887.00, installation costs of $6,232.00, and special acquisition fees of $2,101.00. Calculate a cost basis.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

cost basis of machine = $ 104,808.00

Explanation

Cost of Machine
$
Purchase price          88,588.00
Transportation costs            7,887.00
Installation costs            6,232.00
Special acquisition fees            2,101.00
Total 104,808.00
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
A new machine with a purchase price of $94,985, with transportation costs of $8,334, installation costs...
A new machine with a purchase price of $94,985, with transportation costs of $8,334, installation costs of $5,765, and special acquisition fees of $2,915, would have a cost basis of
A new machine with a purchase price of $97,641.00, with transportation costs of $8,751.00, installation costs...
A new machine with a purchase price of $97,641.00, with transportation costs of $8,751.00, installation costs of $6,548.00, and special acquisition fees of $1,701.00. Calculate a cost basis. Select the correct answer. $97,641.00 $104,189.00 $114,641.00 $105,890.00 A machine with a cost of $76,560.00 has an estimated residual value of $5,844.00 and an estimated life of 3 years or 14,382 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year,...
A used machine with a purchase price of $31,850.00, requiring an overhaul costing $8,619.00, installation costs...
A used machine with a purchase price of $31,850.00, requiring an overhaul costing $8,619.00, installation costs of $6,966.00, and special acquisition fees of $13,594.00, would have a cost basis of Select the correct answer. A.$31,850.00 B.$61,029.00 C.$40,469.00 D.$90,208.00
You are evaluating the purchase and installation of a new machine for your company. The purchase...
You are evaluating the purchase and installation of a new machine for your company. The purchase cost is $20,000 and its installation cost is $5,000. Its maintenance cost is estimated to be $2,000 per year starting EOY 1, increasing by 5% per year for 14 additional years. You estimate the additional revenue after installation to be $10,000 per year starting EOY 1 and continuing for 4 additional years. You estimate revenue to increase to $15,000 starting EOY 6 and increasing...
Ella Inc. is considering purchasing a new milling machine. The new machine costs $298,586, plus installation...
Ella Inc. is considering purchasing a new milling machine. The new machine costs $298,586, plus installation fees of $11,693 and will generate revenue of $3,990,261 per year and cost of good sold of $1,001,512 over its 5-year life. The machine will be depreciated on a straight-line basis over its 5-year life to an estimated salvage value of 0. Mystic’s marginal tax rate is 0%. Mystic will require $33,230 in NWC if the machine is purchased. Determine the annual operating cash...
Ella Inc. is considering purchasing a new milling machine. The new machine costs $127,340, plus installation...
Ella Inc. is considering purchasing a new milling machine. The new machine costs $127,340, plus installation fees of $13,554 and will generate revenue of $2,803,104 per year and cost of good sold of $1,546,605 over its 7-year life. The machine will be depreciated on a straight-line basis over its 7-year life to an estimated salvage value of 0. Mystic’s marginal tax rate is 0%. Mystic will require $31,897 in NWC if the machine is purchased. Determine the annual operating cash...
Ella Inc. is considering purchasing a new milling machine. The new machine costs $289,083, plus installation...
Ella Inc. is considering purchasing a new milling machine. The new machine costs $289,083, plus installation fees of $14,027 and will generate revenue of $3,199,540 per year and cost of good sold of $1,706,517 over its 7-year life. The machine will be depreciated on a straight-line basis over its 7-year life to an estimated salvage value of 0. Mystic’s marginal tax rate is 0%. Mystic will require $31,801 in NWC if the machine is purchased. Determine the annual operating cash...
Elga Co. is considering the purchase of a new production machine for $750,000 and the installation...
Elga Co. is considering the purchase of a new production machine for $750,000 and the installation cost would be $50,000. Sales will be $480,000 per year and annual operating costs (exclusive of depreciation) will be $200,000. The purchase of this machine would necessitate an increase in inventory of $100,000. This machine has an expected life of five years and the salvage value is $50,000. Assume that straight-line depreciation is used. The firm’s cost of capital is 14%, and the firm’s...
Clutch Company purchased equipment and incurred the following costs as part of the purchase: Purchase price...
Clutch Company purchased equipment and incurred the following costs as part of the purchase: Purchase price $10,000 Transportation costs $500 Repair for damage incurred during installation $250 Installation costs $550 Sales tax $750 What amount should Clutch capitalize as the cost of the equipment? 12,050 11,800 11,000 10,750
Vaughn Inc. wants to purchase a new machine for $45,800, excluding $1,500 of installation costs. The...
Vaughn Inc. wants to purchase a new machine for $45,800, excluding $1,500 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,400, and Vaughn Inc. expects to sell it for that amount. The new machine would decrease operating costs by $10,000 each year of its economic life. The straight-line depreciation method would be used for the new...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT