ACC 210P Chapter 7

ACC 210P Chapter 7 - ACC 210P Chapter 7 1. For each of the...

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ACC 210P Chapter 7 1. For each of the following items, indicate whether each would be treated as capital expenditure or revenue expenditure. (Choices may be used more than once.) a. capital expenditure b. revenue expenditure 1. Costs related to acquiring an asset, such as sales or excise taxes, transportation, insurance during shipment. 2. Costs incurred prior to using the asset, such as installation and other costs to prepare the asset for use. 3. Costs incurred after putting the asset into service which keep the asset in normal operating condition. 4. Costs incurred after putting the asset into service which would extend the asset's useful life.
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2. Kudlow Inc. purchased a machine on January 1, 2009, for $50,000. The truck had an estimated life of five years and an estimated salvage value of $5,000. Kudlow uses the straight-line method to depreciate the asset. On July 1, 2011, the truck was sold for $17,500 cash. A)
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ACC 210P Chapter 7 - ACC 210P Chapter 7 1. For each of the...

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