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Unformatted text preview: Balance at December 31, 2007 $749,000 Craig Ehlo Company ANALYSIS OF MACHINERY AND EQUIPMENT ACCOUNT for 2007 Balance at January 1, 2007 $875,000 Cost of the new machines acquired Invoice price $ 87,000 Freight costs 3,300 Unloading charges 2,400 92,700 Balance at December 31, 2007 $967,700 (b) Items in the fact situation which were not used to determine the answer to (a) above are as follows: 1. Interest imputed on common stock financing is not permitted by FASB Statement No. 34 and thus does not appear in any financial statement. 2. Land site number 623, which was acquired for $650,000, should be included in Ehlos balance sheet as land held for resale (investment section). 3. Royalty payments of $17,500 should be included as a normal operating expense in Ehlos income statement....
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- Spring '10