Fastball Delivery Company acquired an adjacent lot to construct a new warehouse,
ID: 2372502 • Letter: F
Question
Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $30,000 and giving a short-term note for $270,000. Legal fees paid were $1,425, delinquent taxes assumed were $12,000, and fees paid to remove an old building from the land were $18,500. Materials salvaged from the demolition of the building were sold for $4,500. A contractor was paid $910,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. Please show work!!! Connect Lines Co. incurred the following costs related to trucks and vans used in operating its delivery service: 1. Replaced a truckExplanation / Answer
Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $30,000 and giving a short-term note for $270,000. Legal fees paid were $1,425, delinquent taxes assumed were $12,000, and fees paid to remove an old building from land were $18,500. Materials salvaged from the demolition of the building were sold for $4,500. A contractor was paid $910,00 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.
30,000 + 270,000 + 1,425 + 12,000 + 18,500 - 4,500 = 327,425
Connect Lines Co. incurred the following costs related to trucks and vans used to operating its delivery service
1.replaced a trucks suspensions system with a new suspension system that allows delivery on heavier loads
Capital
2.Installed a hydraulic lift to a van
Capital
3.repaired a flat tire on one of the vans
Revenue
4.overhauled the engine on one of the trucks purchased three years ago
Capital
5.removed a two-way radio from one of the trucks and installed a new radio with a greater range od communication.
Capital
6.rebuilt the transmission on one of the vans that had been driven 40,000 miles the van was no longer under warranty
Revenue
7.changed the radiator fluid on a truck that had been in service for the past four years
Revenue
8.tinted the back and side windows of one of the vans to discourage theft of contents
Capital
9.changed the oil and greased the joints of all the trucks and vans
Revenue
10.installed security systems on four of the newer trucks.
Capital
Classify each of the casts as a capital expenditure or a revenue expenditure
A refrigerator used by a meat processor has a cost of $93,750 an estimated residual value of $10,000 and an estimated useful life of 25 years. What is the amount of the annual depreciation computed by the straight-line method?
(93,750 - 10,000) / 25 = 3,350
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