Solution-Calculate the amount that should be recorded by

Calculate the amount that should be recorded by crow co

Assignment Help Accounting Basics

Reference no: EM132482465

Crow Co. purchased some of the machinery of Hare Inc., a bankrupt competitor, at a liquidation sale for a total cost of $15,000. Crow's cost of moving and installing the machinery totaled $2,200.

The following data are available:

Item

Hare's Net Book Value on the
Date of Sale

list Price of Same Item
If New

Appraiser's Estimate of
Fair Value

Punch press Lathe

Welder

$ 10,940

8,140
2,360

$ 19,000

8,000
6,000

S 16,000

6,000
3,080

Required:

Question a. Calculate the amount that should be recorded by Crow Co. as the cost of each piece of equipment. (Do not round intermediate calculations.)

Question b. Which of the following alternatives should be used as the depreciable life for Crow Co.'s depreciation calculation?

The life of a new machine.
The remaining useful life to Hare Inc.
The useful life of the asset to Crow Co

Reference no: EM132482465

Questions Cloud

Describe the types of budgets that you know : Mention the types of budgets that you know and give examples of them? Give examples of productive and non-productive hours?

Identifying at least one other ratio that creditors may use : Why do some items get "special presentation" on the income statement? It doesn't change the bottom line, so what difference does it make?

Describe in details the process : The production function has the form Q = 50· L0,5 K0,5 Let PL = w = 5, ?K = r = 20

Information about the firm production : Suppose ABC Corp. is a firm producing newsprint in a perfectly competitive industry. We have the following information about the firm's production:

Calculate the amount that should be recorded by crow co : Calculate the amount that should be recorded by Crow Co. as the cost of each piece of equipment. (Do not round intermediate calculations.)

What were benefits guaranteed by insurance plans : What were the 10 essential benefits guaranteed by insurance plans in the ACA Health Care Marketplace? What are the successes of the ACA?

What are some of the economic approaches : What are good arguments for US and china comparison? What are some of the economic approaches?

Describe potential benefits of understanding spirituality : Include the potential benefits of understanding spirituality too both health care providers and patients. What health issues maybe better addressed.

Individual demand and market demand : Can you explain the difference between individual demand and market demand?

User Account

All Pages

Calculate the amount that should be recorded by crow co

Reference no: EM132482465

Reference no: EM132482465

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT