Evaluate the sales tax on purchase price

Reference no: EM135662

Catherine Simpkins owns and operates Speedy Print Co. Through February, Speedy Print Co. incurred the subsequent costs in acquiring two printing presses. One printing press was new, and the other was used by a business that currently filed for bankruptcy. Costs related to new printing press:

1. Sales tax on purchase price

2. Freight

3. Special foundation

4. Insurance while in transit

5. New parts to replace those damaged in unloading

6. Fee paid to factory representative for installation

Costs related to used printing press:

7. Fees paid to attorney to review purchase agreement

8. Freight

9. Installation

10. Repair of vandalism during installation

11. Replacement of worn-out parts

12. Repair of damage incurred in reconditioning the press

a. Show which costs incurred in acquiring the new printing press could be debited to the asset account

b. Show which costs incurred in acquiring the used printing press could be debited to the asset account

Reference no: EM135662

Questions Cloud

How classical economists explained this business cycle : A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.

Evaluate targets accounts receivable turnover : What amount did Target report as accounts receivable, total on its ending 2007 balance sheet and Prepare the entries that Target made in its allowance for doubtful accounts in 2007

What values of py will bob buy only x : Bob consumes two commodities: x and y. For what values of py will Bob buy y, and for what values of py will Bob buy only x?

Evaluate the cost of direct materials : Evaluate the subsequent amounts for the month of May cost of direct materials used and cost of direct labor used.

Evaluate the sales tax on purchase price : One printing press was new, and the other was used by a business that currently filed for bankruptcy. Costs related to new printing press

Tax consequences to subsidiary and parent : Liquidation of Subsidiary - Tax Consequences to Subsidiary and Parent

Firm will ceteris paribus : Price elasticity of demand is 1.5 and a firm raises its price by 20 percent the quantity sold by the firm will ceteris paribus.

Evaluate the total amount of gain : What are Zia's and Jed's bases in their new AlphaBeta stock and evaluate the total amount of gain recognized by Jed, Zia, Alpha, and Beta on the reorganization?

Effectiveness of various discounts offered : The manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months

User Account

All Pages