James Construction purchased machinery worth $800,000 on January 1, 2022, with Straight Line depreciation, 15 years, and
Fantastic news! We've Found the answer you've been seeking!
Question:
James Construction purchased machinery worth $800,000 on January 1, 2022, with Straight Line depreciation, 15 years, and no residual value. They need to build a platform for $28,000 cash on January 1, 2022. They have agreed to restore the site at the end of its useful life. They estimate the cost to restore will be $35,000. Their interest rate is 5%. Record the purchase of the machinery, the building of the platform, and any other entries required for 2022 and 2023. Show all steps.
Show NPV calculation using excel and tables.
Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date: