The following expenditures were incurred to buy a new machine:
Invoice, $32,000 less 8% cash discount.
Freight charges, $460.
Assembly charges, $1,000.
Special base to support machine, $501.
Machine dropped and repaired $320.
What is the actual cost of the machine?
What Are Fixed Assets:
A company's Fixed Assets are presented on the balance sheet as part of its Non-Current Assets. Fixed Assets are those that the company intends to use in its operations for multiple financial reporting cycles (e.g. machinery, buildings, etc.).
Answer and Explanation: 1
|Invoice, $32,000 less 8% cash discount||Included (purchase price)|
|Freight charges, $460||Included (required for...|
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fromChapter 3 / Lesson 10
Learn the definition of fixed assets and examine their importance. Explore the various types of fixed assets, identify their characteristics, and see examples.