Antique Furniture Company decided to purchase a new furniture-polishing machine for its store in New York City.
Question:
Antique Furniture Company decided to purchase a new furniture-polishing machine for its store in New York City. After a long search, it found the appropriate polisher in Chicago. The machine costs $\$ 75,000$, and has an estimated 10 -vear life and no salvage value. Antique Furniture Company made the following additional expenditures with respect to this purchase:
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Sales tax
$4,000 Delivery costs (FOB shipping point) . . . . . . . . 1,500 Installation costs . . . . . . . . . . . . . . . . . . . 2,200 Painting of machine to match the decor. . . . . . 300
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1. What is the cost of the machine to Antique Furniture Company?
2. What is the amount of the first full year's depreciation if Antique uses the straightline method?
Step by Step Answer:
Survey Of Accounting
ISBN: 9780538846172
1st Edition
Authors: James D. Stice, W. Steve Albrecht, Earl Kay Stice, K. Fred Skousen