khan company made several purchases of long term assets in 2012 253214

Khan Company made several purchases of long-term assets in 2012. The details of each purchase are presented here.

New Office Equipment

1. List price: $40,000; terms: 1/10 n/30; paid within the discount period.

2. Transportation-in: $800.

3. Installation: $500.

4. Cost to repair damage during unloading: $500.

5. Routine maintenance cost after eight months: $120.

Basket Purchase of Office Furniture, Copier, Computers, and Laser Printers for $50,000 with Fair Market Values

1. Office furniture, $24,000.

2. Copier, $9,000.

3. Computers and printers, $27,000.

Land for New Headquarters with Old Barn Torn Down

1. Purchase price, $80,000.

2. Demolition of barn, $5,000.

3. Lumber sold from old barn, $2,000.

4. Grading in preparation for new building, $8,000.

5. Construction of new building, $250,000.

Required

In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?