Question

Boone Co., Inc., made several purchases of long-term assets in 2013. The details of each purchase are presented here.
New Office Equipment
1. List price: $70,000; terms: 2/10 n/30; paid within discount period.
2. Transportation-in: $2,500.
3. Installation: $3,000.
4. Cost to repair damage during unloading: $800.
5. Routine maintenance cost after six months: $450.
Basket Purchase of Copier, Computer, and Scanner for $20,000 with Fair Market Values
1. Copier, $12,000.
2. Computer, $10,500.
3. Scanner, $7,500.
Land for New Warehouse with an Old Building Torn Down
1. Purchase price, $225,000.
2. Demolition of building, $15,000.
3. Lumber sold from old building, $5,000.
4. Grading in preparation for new building, $16,000.
5. Construction of new building, $450,000.

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



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  • CreatedOctober 26, 2013
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