Theory & Problems Student Name The complete test is due back in class on March 1
ID: 2543971 • Letter: T
Question
Theory & Problems Student Name The complete test is due back in class on March 17, 2018 by 12:30pm. No exception will b Test #2 March 10, 2018 granted for late submission. Questions 1-10 with 10 points each, Questions 11-14, Extra Credit with 5 points each Grumpy installed new assembly line production equipment at a cost of $250,000. Grumpy had to rearrange the assembly line and remove a wall to install the equipment. The rearrangement cost was $25,000 and the wall removal cost was $5,000. The rearrangement did not increase the life of the assembly line but it did make it more efficient. Additionally, Grumpy paid $10,000 for the permit for construction. What amount of these costs should be capitalized by Grumpy? 2.Explanation / Answer
Ascertainment of amounts to be capitalized by the company
Cost of the Equipment = $ 2,50,000
Rearrangement Cost = $ 25,000
Removal Cost = $ 5,000
Permit charges paid for construction = $ 10,000
Total amount to be capitalized = $ 2,90,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.