1. Compute the amount recorded as the cost of a new machine used in the production process...
Question:
1. Compute the amount recorded as the cost of a new machine used in the production process of a company, given the following payments related to its purchase:
Purchase Price $700,000
Sales Tax $ 50,000
Purchase Discount Taken $ 10,000
Transit Costs $ 2,500
Assembly & Testing Costs $ 5,000
Cost of Necessary Machine Platform $ 2,500
Cost of Maintenance Parts for All Machines $ 4,200
Calculate the cost of the machine that should be capitalized.
A machine costing $22,000 with a 5-year life and estimated salvage value of $2,000 is installed on January 1. Calculate the straight-line depreciation for the first year of the machine’s life.
2. A company owns a production machine that cost $5,000 with a salvage value of zero. The machine was just sold for $1,100. Accumulated depreciation has just been updated and accurately reflects an amount of $4,000. In good order and form record the necessary General Journal entry to dispose of the machine.
The net sales for a company are $959.9 million. Its average total
assets at year-end are $625.3 million. To four decimal places,
Calculate the Total Asset Turnover for the company