eztor com/hm.tpx Question 1 fof 5) Save&Exit; Subm 10.00 points Crow Co. purchas
ID: 2521070 • Letter: E
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eztor com/hm.tpx Question 1 fof 5) Save&Exit; Subm 10.00 points Crow Co. purchased some of the machinery of Hare, Inc., a bankrupt compettor, at a liquidation sale for a total cost of $90,800. Crow's cost of moving and installing the machinery totaled $8,200. The following data are available: Hare's Net Book Value on the List Price of Same ltem i Appraiser's Estimate of Date of Sale $ 40,480 48.384 22,096 s 88,000 54,000 37,000 60,000 36,000 24,000 Punch press Welder a. Calculate the amount that shouid be recorded by Crow Co. as the cost of each piece of equiment. Punch press Total tne depreciable lite for Crow calculation aternatives should be used as ne depreciable Iite for Crow Co.'s deprecation calculation? O The useful lifo of the asset to Crow Co MacBook A 8 9 0Explanation / Answer
Total coost of machinery: Price paiid to competitor 90,800 Add: Cost of moving and installing 8200 Total cost of machinery 99000 (to be apportioned in fair value basis) Therfore, Allocation of cost is as folows: Items Fair value % of Cost to be apportioned Allocation of cost Appraiser's Fair value Punch pres 60,000 50% 99000 49500 lathe 36,000 30% 99000 29700 Welder 24,000 20% 99000 19800 Total 120,000 99000 99000 Depreciable life of the assets: The Useful life of assets for Crow co. (life of asset with the purchaser shall be taken)
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