User Account

All Pages

Determine the amount to be capitalized in an asset account

Assignment Help Financial Accounting
Reference no: EM132745383

Question - East Carolina Lumber Co. purchased an electronic saw to cut various types and sizes of logs. The saw had a list price of $85,000. The seller agreed to allow a 10% discount because East Carolina paid cash. Taxes were 5% of the net purchase price. Delivery terms were FOB shipping point. Freight cost amounted to $2,250. Modifications to the sawmill to allow for installation of the new saw cost $3,200. East Carolina had to hire an individual to operate the saw. The operator spent the first half month of employment working on installation of the saw.  The operator was paid an annual salary of $33,000. Costs incurred during installation and set-up (calibration, scrap, etc.) totaled $750. The cost of the company's liability insurance policy increased by $5,300 per year as a result of the acquisition of the saw. The saw had a five-year useful life and an expected salvage value of $5,000.

Required -

1. Determine the amount to be capitalized in an asset account for the purchase of the saw.

2. When does Goodwill occur? How is Goodwill calculated? How is Goodwill classified in the financial statements?

Reference no: EM132745383

Questions Cloud

What is the book value per share of ordinary share : 10% Preference share capital, cumulative, What is the book value per share of ordinary share, assuming preference dividends are in arrears since 2009?
Business is hair store called natural hair goals : Feasibility Analysis "A feasibility analysis is a chance to open your eyes, ask yourself some very tough questions,
Analyzing the ethical and financial implications : Analyzing the ethical and financial implications of the selected company's LBO transaction: Provide a brief summary of the company
Find what is the book value per share on ordinary share : The last payment of dividend on preference was in December 31, 2010. If preference share is participating, what is the book value per share on ordinary share?
Determine the amount to be capitalized in an asset account : Taxes were 5% of the net purchase price. Delivery terms were FOB shipping point. Determine the amount to be capitalized in an asset account
Organization and marketing strategy to brand organization : Create an organization and marketing strategy to brand an organization.
What the book value per share on ordinary share is : If White is to be liquidated, the preference shareholders would receive par value plus a premium of P10 per share. The book value per share on ordinary share is
What is the diluted earnings per share for the year : The net income for the year ended December 31, 2012 is P640,000. Income tax rate is 32%. What is the diluted earnings per share for the year 2012?
Labor laws protecting both employees and employers : There are various federal and state employment and labor laws protecting both employees and employers.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd