You acquired a piece of machinery costing $36,330. Freight charges incurred were $4,766 and you...
Question:
You acquired a piece of machinery costing {eq}\$36,330 {/eq}. Freight charges incurred were {eq}\$4,766 {/eq} and you had to spend {eq}\$5,768 {/eq} to install the machine, but while the machine was being installed a part of it was damaged and you paid {eq}\$390 {/eq} to have it repaired. At what amount will the machine be reported on the balance sheet?
Non Current Assets:
Assets is the first section of the Balance Sheet. It can be categorized into two classifications : Current and Non Current Assets. Current Asset is assets that can be easily liquidated and it is held for a short period of time. Example of Current Assets are Cash, Accounts Receivables and Inventory. While the Non Current Assets are held for a long period of time and has restrictions. Examples of Non Current Assets are Land, Building and Equipment.
Answer and Explanation: 1
| Acquisition Cost | $36,330 |
|---|---|
| Installation Cost | 5,768 |
| Freight In | 4,766 |
| Repair while installing | 390 |
| Total Cost | $47,254 |
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