Determine the amount to be capitalized in the asset account

Assignment Help Financial Accounting
Reference no: EM132752197

Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $140,000. The seller agreed to allow a 4 percent discount because Southwest Milling paid cash. Delivery teems were FOB shipping point. Freight cost amounted to $ 1,200. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,800. The loader operator is paid an annual salary of $60,000. The cost of the company's theft insurance policy increased by $800 per year as a result of acquiring the loader. The loader had a four-year useful lift and an expected salvage value of $6,000.

Required:

Problem 1: Determine the amount to be capitalized in the asset account for the purchase of the front-end loader.

Reference no: EM132752197

Questions Cloud

What type of risk is measured by the standard deviation : What type of risk is measured by the standard deviation? Why is the T-bill's return independent of the state of the economy? Do T-bills promise
Discuss the opportunities to support leadership development : Critically discuss the opportunities to support leadership development
Define key technical requirements : Define key customer requirements for any product you are familiar with and Create a matrix showing the relationship between technical and customer requirements
What kinds of metrics and indicators could we use : How could the success of the intervention be measured in the company when employees will leave the firm in the next few year but there are just a few.
Determine the amount to be capitalized in the asset account : The loader had a list price of $140,000. Determine the amount to be capitalized in the asset account for the purchase of the front-end loader.
Determine the influence of corporate commitment : Determine the influence of corporate commitment to employee welfare on the development of organizational values that will realize strategic ambitions
What would be the ho adjusted balance of allowance account : The home Office bills its only branch at 25%, What would be the HO adjusted balance of the allowance account as at December 31, 2018?
Reflect on walmart strategy : Reflect on Walmart's strategy in terms of 'the architecture of simplicity'. In your view what is the caution it should exercise to avoid decline?
How are betas used in risk analysis : Is it possible to choose among the alternatives on the basis of the information developed thus far? how are betas used in risk analysis?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Question paula and paul petroceli were trying to choose

question paula and paul petroceli were trying to choose whether to go to the symphony or to the baseball game. they

  Erroneous trial balance

At the end of the year, Alpha Corporation's adjusted trial balance had total debits of $59,130 and total credits of $59,570.

  Does the company conduct business internationally

Does the company conduct business internationally, what are the company's primary products and/or services and who is the chief executive officer of the company and who is the auditor for the company

  How much are you willing to pay for the stock today

Transformer Technologies. has common stock which paid a dividend of $1.05 per share last year. You expect the stock to grow at 5% per year. If the appropriate rate of return on this stock is 10%, how much are you willing to pay for the stock today?

  Find what is the company free cash flow

Find What is the company's free cash flow? Changein working capital($5,000). Net capital expenditures: $10,000. Depreciation: $30,000

  Flotation costs for a new issue

Flotation costs for a new issue would be approximately 3 percent of the current price. If Netflix faces a 40% tax rate, what is its after-tax cost of debt?

  What is the issue price of the bonds

If the effective annual rate of interest is 12%, what is the issue price of the bonds? Some relevant and irrelevant present value factors

  Calculate the current value of xyz share

Compute the current value of ABC bonds if the required rate of return is 10% annually. Calculate the current value of XYZ share

  Determine the basis for the shares sold

Determine the basis for the shares sold consider the FIFO cost method?

  Explain the theory behind the use of flexible budgets

how such systems relate to an organization's management accounting and control system; explain the theory behind the use of flexible budgets, standard costs, and variance analysis as elements of a financial control system.

  What would rasta fx equity exposure be

What would Rasta's FX equity exposure be if the company would issue/raise an additional (new) USD 30 million in EUR-denominated debt?

  The company received no proceeds related to salvage

At December 31, 2017, Grand Company reported the following as plant assets. Land $ 4,100,000 Buildings $28,400,000 Less: Accumulated depreciation—buildings 12,870,000 15,530,000 Equipment 47,910,000 Less: The land cost $408,000. July 1 Purchased equi..

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!

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