A company purchased 20 printers at $12,000 each for cash. Management has approved the following requests.  

1. The sales team wants to use one as a demo unit on the floor for 3 months because they think it will help with sales.  

2. The research department wants one to use as part of their work.  

3. The accounting department wants one that they plan to use over the next 4 years. The rest will be sold to the public.

Please answer the following questions. :

1. What affect does the usage have on how the printers are accounted for in the books?

2.  What additional information do you need.

3. Based on the usage ( there are 4 alternatives) how would each accounting treatment appear on the income statement and balance sheet.

Answer rating: 100% (QA)

1 The usage of the printers will affect how they are accounted for in the books The printers that are used for internal purposes demo unit for sales r... View the full answer