Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Tea Tree Bay Ltd acquires a Gizmo Machine from Jetsons Ltd for the following consideration: Cash $20,000 Land In the books of Tea Tree Bay Ltd the land is recorded at its cost of $100,000. It has a fair value of $140,000. Equipment: In the books of Tea Tree Bay Ltd the equipment is recorded at a cost of $50,000. The equipment has an accumulated depreciation balance of $20,000. The fair value of the equipment is $23,000 Assumption of liability Tea Tree Bay Ltd also agrees to assume the liability of Jetsons Ltd's bank loan of $30,000 as part of the Gizmo Machine acquisition. Other associated costs Tea Tree Bay Ltd also spend $5,000 as the installation cost. Testing cost was $2,500. Transportation cost for the machine was $700. During first year of operation, the company paid $650 as the maintenance cost for the machine.
Required -
a) Calculate the acquisition cost of the Gizmo Machine that will be used as the base for future depreciation charge.
b) Provide the journal entries that would appear in Tea Tree Bay Ltd's books to account for the acquisition of the Gizmo Machine.
c) Will the maintenance cost be included in the acquisition cost of the machine? Justify your answer.
Eager Co. receives $20,000 cash in advance for 4 months of legal services on October 1, 2011, and records it by debiting Cash and crediting Unearned Revenue.
what is the difference in price between what you can afford to buy with a 4% interest rate and a 6% interest rate
Find out which file organizations are used in different database management systems at your university. Also discuss why they chose a particular struc- ture. Is there any application of hashed file organization? Which algorithm is used in this str..
In no less than two hundred words What is the purpose and important of the Statement of Cash Flows
Milner Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 box tops from Milner Frosted Rakes boxes and $1.00.
Determine who should be held liable for any breaches that occur, and indicate the course(s) of action that should be taken.
Question: Examine the implications of activity-based costing for Wayco Leisure, and in so doing evaluate the issues raised by each of the directors
What is the definition of "incremental borrowing rate"? What is the definition of "estimated residual value"?
What other ratio or ratios might you review to determine whether or not the increase in the current ratio is an improvement in financial health?
Received electricity bill for $400 from Energy Australia for the month of April
Is the multiplier larger or smaller than the case in which government spending is exogenous? When t increases, does Y increase, decrease, or stay the same?
Suppose new instruments for a firm cost $18,000 with an additional installation fee of $2,000, both of which are depreciable. Complete the depreciation schedule shown below using the Modified Accelerated Cost Recovery System (MACRS) 3-year class.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd