Question: Rich Castillo Company incurs the following expenditures in purchasing a
Rich Castillo Company incurs the following expenditures in purchasing a truck: cash price $30,000, accident insurance $2,000, sales taxes $2,100, motor vehicle license $100, and painting and lettering $400. What is the cost of the truck?
Answer to relevant QuestionsCorales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a salvage value of $6,000 at the end of its 4-year useful life. Compute annual depreciation expense for the first and second years ...Flaherty Company had the following two transactions related to its delivery truck.1. Paid $45 for an oil change.2. Paid $400 to install special gear unit, which increases the operating efficiency of the truck.Prepare ...Olathe Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $31,000 (cost $61,000 less accumulated depreciation $30,000). Its fair value is $24,000, and cash of ...On March 1, 2014, Westmorlan Company acquired real estate on which it planned to construct a small office building. The company paid $75,000 in cash. An old warehouse on the property was razed at a cost of $8,600; the ...The following are selected 2014 transactions of Pedigo Corporation.Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite.May 1 Purchased for $75,000 a patent with an estimated ...
Post your question