Chapter 10 E10-4 ACC

Chapter 10 E10-4 ACC - EXERCISE 10-4 Purchase Cash paid for...

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EXERCISE 10-4 Purchase Cash paid for equipment, including sales tax of $5,000. ................................. $105,000 Freight and insurance while in transit. ............................................................. 2,000 Cost of moving equipment into place at factory. .............................................. 3,100 Wage cost for technicians to test equipment. ................................................... 6,000 Special plumbing fixtures required for new equipment. ................................. 8,000 Total cost. ............................................................................................................. $124,100 The insurance premium paid during the first year of operation on this equipment should be reported as insurance expense, and not be capitalized. Repair cost incurred in the first year of operations related to this equipment should be reported as repair and maintenance expense, and not be capitalized. Both these costs relate to periods subsequent to purchase. Construction
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This note was uploaded on 10/31/2010 for the course FIN 82571 taught by Professor Sharp during the Fall '10 term at CSU Sacramento.

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Chapter 10 E10-4 ACC - EXERCISE 10-4 Purchase Cash paid for...

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