Question 2- (10) Seema Company purchased a machine on April 01, 2017 at a list price...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 2- (10) Seema Company purchased a machine on April 01, 2017 at a list price of Rs 1,000,000 with a trade discount at 10%. The credit terms were 2/10, 1/20, n/30. The payment was made on 19 April. The company incurred the following additional expenditures. 1- 5% Sales tax on the cash price of Machine 2- Custom Duty 5% of cash price 3- Installation & Testing cost Rs 300,000 4- The machine was insured against theft and fire and premium paid Rs 50,000 5- Insurance in transit Rs 100,000 6- Freight in Rs 50,000 7- Some parts damaged during installation and get repaired for 25,000. 8- FED Tax Rs 69,900 paid, Required: Compute the cost of the Machine Calculate the Depreciation for 3 years using 1. a. (4) b. Straight Line Method, assuming useful life of 10 years and scrap value of Rs 10% of cost (3) I. Diminishing Balance Method, depreciation rate is 25% per annum (3) Question 2- (10) Seema Company purchased a machine on April 01, 2017 at a list price of Rs 1,000,000 with a trade discount at 10%. The credit terms were 2/10, 1/20, n/30. The payment was made on 19 April. The company incurred the following additional expenditures. 1- 5% Sales tax on the cash price of Machine 2- Custom Duty 5% of cash price 3- Installation & Testing cost Rs 300,000 4- The machine was insured against theft and fire and premium paid Rs 50,000 5- Insurance in transit Rs 100,000 6- Freight in Rs 50,000 7- Some parts damaged during installation and get repaired for 25,000. 8- FED Tax Rs 69,900 paid, Required: Compute the cost of the Machine Calculate the Depreciation for 3 years using 1. a. (4) b. Straight Line Method, assuming useful life of 10 years and scrap value of Rs 10% of cost (3) I. Diminishing Balance Method, depreciation rate is 25% per annum (3)
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
Students also viewed these accounting questions
-
A discount store purchased some special products at a list price of $1,600. If the broker gives a 20.25% trade discount, what is the amount of the trade discount? a. $950.00 b. $1,276.00 c. $1,706.00...
-
On July 1, 2010, Boston Company purchased a machine at a cost of $80,000. It paid $56,046.06 in cash and signed a 10% note for the difference. This note is to be paid off in annual installments of...
-
On January 2, 2013, Allen Company purchased a machine for $70,000. This machine has a five-year useful life, a residual value of $10,000, and it is depreciated using the straight-line method for...
-
Two capillary tubes of the same radius r but of lengths & and 1 are fitted horizontally to the bottom of a tall vessel containing a liquid at constant Pressure head and flowing through these tubes....
-
What is the self-reference criterion and how should the international marketer apply it? Explain.
-
For each of the following functions, decide whether the Mean Value Theorem applies on the indicated interval I. If so, find all possible values of c, if not, tell why. Make a sketch. a. f(x) = x3/3;...
-
A boy on a skateboard coasts along at \(5 \mathrm{~m} / \mathrm{s}\). He has a ball that he can throw at a speed of \(10 \mathrm{~m} / \mathrm{s}\). What is the ball's speed relative to the ground if...
-
Vic, who was experiencing financial difficulties, was able to adjust his debts as follows. Determine the Federal income tax consequences to Vic. a. Vic is an attorney. Vic owed his uncle $25,000. The...
-
If Monsters Inc. stock has an expected rate of return of 7.8% and a beta a 1.13 and the risk-free rate of return is 6%, what is the expected return on the market?
-
Wild West produces two types of cowboy hats. A Type 1 hat requires twice as much labor time as a Type 2. If all the available labor time is dedicated to Type 2 alone, the company can produce a total...
-
Scam Corp. pays a constant $5 dividend on its stock at the end of each year. The company will maintain this dividend for the next 3 years and will then cease to exist and therefore never pay another...
-
Suppose that Luke stays with his current employer until retirement, Luke and his employer continue to contribute a total of $5,000 to his defined contribution pension plan at the start of each year,...
-
Buyer Brad is selling his home to seller Sally with a closing date of January 31. Brad's taxes for the last year were $3,756.75. How much is Sally's share of the taxes, using a 365-day-year statutory...
-
Determine what consolidation entries needed when there are intercompany reciprocal accounts (e.g., accounts payable, accounts receivable) and the impact of these entries on consolidated financial...
-
(5 points) Evaluate the integral and check your answer by differentiating. /[sec sec(x) + cos(x) 5 cos(x) cos(x)] dx = + C
-
Deer and Fishing Company owns $6,000 of office furniture. Accumulated Depreciation had a balance of $3,000 before recording this year's depreciation. Depreciation Expense for the current year is...
-
The European Union has faced a number of challenges in recent years, from withdrawal of the United Kingdom (Brexit) to financial crises and political unrest in the southern tier countries (Italy,...
-
Figure displays a 12.0 V battery 3 four uncharged capacitors of capacitances C1 = 4.00F, C2 = 6.00F, and C3 = 3.00F. The switch is thrown to the left side until capacitor 1 is fully charged. Then the...
-
The company reported the following information relating to inventory for the month of April: Sales for the month totaled $80,000. Compute the estimated cost of inventory on hand at the end of the...
-
What major accounting action has been taken since Chairman Levitts speech in 1998 to limit the abuse of revenue recognition to manage earnings?
-
The Gidewall Corporation uses part 210 in a manufacturing process. Information as to balances on hand, purchases, and requisitions of part 210 is given in the following table: Instructions: What is...
-
Using two CST elements, solve the simple shear problem depicted in the figure and determine whether the CST elements can represent the simple shear condition accurately or not. Material properties...
-
A heat conduction problem is modeled using four onedimensional heat conduction elements, as shown in figure 4.6. All elements are of the same length, \(L=1 \mathrm{~m}\), cross sectional area of...
-
Consider a network of onedimensional heat conduction elements as shown in figure 4.7. The temperature at node 1 is fixed and heat inputs at other nodes are prescribed. Properties of the elements are...
Study smarter with the SolutionInn App