In each of these cases determine the amount of cost to be


Shay Company made several purchases of long-term assets in 2013. The details of each purchase are presented here. 

New Office Equipment: 

1. List price: $50,000; terms: 1/10 n/30; paid within the discount period. 
2. Transportation-in: $1,200. 
3. Installation: $1,000. 
4. Cost to repair damage during unloading: $700. 
5. Routine maintenance cost after eight months: $240.Basket Purchase of Office Furniture, Copier, Computers, and

Laser Printers for $70,000 with Fair Market Values 

1. Office furniture, $48,000. 
2. Copier, $12,000. 
3. Computers and printers, $20,000. 

Land for New Headquarters with Old Barn Torn Down 

1. Purchase price, $100,000. 
2. Demolition of barn, $7,000. 
3. Lumber sold from old barn, $2,000. 
4. Grading in preparation for new building, $11,000. 
5. Construction of new building, $310,000. 

Required: 

In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

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Accounting Basics: In each of these cases determine the amount of cost to be
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