Can you answer required question from Part 1. with a brief explanation? Thank yo

Question

Can you answer required question from Part 1. with a brief explanation? Thank you!!

The Blue Moon Motel has purchased a new computer for its own use. Using the following information, determine the proper amount to be capitalized in the asset account Equipment. The invoice includes the price of the computer, the sales tax, and maintenance. Invoice price of equipment $10,000 Sales tax on purchase (4% as shown on invoice) 400 Term of sale: 2/10, n/30 (Assume the invoice will be paid within the discount period.) Freight in paid 300 Speeding ticket given to our truck driver while delivering equipment 25 Installation costs 150 Maintenance contact -2 years 2,000 The Blue Spruce Inn has purchased a shuttle bus to transport guest to and from a local ski lodge. The cost of the bus is $80,000; its salvage value is $10,000; and its life is five years. Calculate the second year's depreciation under each of the following methods: Straight-line Sum of the year's digits Double declining balance

Explanation / Answer

Amount to be capitalised price 10000 sales tax 400 Less:discount -200 (10000*0.02) freight 300 installation cost 150 total 10650

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.