Required information PB9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Goldenrod Corporation bought a shed, a machine, and a trailer. The shed Initially cost $20,800 but had to be renovated at a cost of $640. The shed was expected to last 7 years, with a residual value of $1,700, Repairs costing $460 were incurred at the end of the first year of use. The machine cost $11,500, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2.. The trailer cost $11,800 and was expected to last 4 years, with a residual value of $2,000. PB9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for the shed.
Required information PB9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Goldenrod Corporation bought a shed, a machine, and a trailer. The shed Initially cost $20,800 but had to be renovated at a cost of $640. The shed was expected to last 7 years, with a residual value of $1,700, Repairs costing $460 were incurred at the end of the first year of use. The machine cost $11,500, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2.. The trailer cost $11,800 and was expected to last 4 years, with a residual value of $2,000. PB9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for the shed.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 29P
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