Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Tea Tree Bay Ltd acquires a Gizmo Machine from Jetsons Ltd for the following consideration: Cash $20,000 Land In the books of Tea Tree Bay Ltd the land is recorded at its cost of $100,000. It has a fair value of $140,000. Equipment: In the books of Tea Tree Bay Ltd the equipment is recorded at a cost of $50,000. The equipment has an accumulated depreciation balance of $20,000. The fair value of the equipment is $23,000 Assumption of liability Tea Tree Bay Ltd also agrees to assume the liability of Jetsons Ltd's bank loan of $30,000 as part of the Gizmo Machine acquisition. Other associated costs Tea Tree Bay Ltd also spend $5,000 as the installation cost. Testing cost was $2,500. Transportation cost for the machine was $700. During first year of operation, the company paid $650 as the maintenance cost for the machine.
Required -
a) Calculate the acquisition cost of the Gizmo Machine that will be used as the base for future depreciation charge.
b) Provide the journal entries that would appear in Tea Tree Bay Ltd's books to account for the acquisition of the Gizmo Machine.
c) Will the maintenance cost be included in the acquisition cost of the machine? Justify your answer.
Evaluate the challenges for u.s. public companies to fully adopt ifrs and propose solutions to these challenges. Provide support for your recommendations.
What was the amount of Raw Materials used during this quarter?
The accounts for Gulf Corp. reported the equity account balances shown in the table. Prepare general journal entries to record the transactions.
Many of the concepts in managerial accounting were first developed for manufacturing environment. Applying Managerial Accounting Concepts to Service Indusdry
max a cash basis taxpayer had 2100 in state income taxes withheld from his paychecks during the current year. in april
The "net exports effect" is the impact on a country's total spending caused by an inverse relationship between the price level and the net exports of an economy. Using this principle, discuss how the following economic variables change during an e..
Ron's rent in the dormitory where he lived would have been $5,000 for the year. What is Ron's adjusted gross income for 2014
Suggest the financial ratio that most financial analysts would use to evaluate the financial condition of the company. Provide support for your rationale.
Davis Corporation was authorized to issue 100,000 shares of $10 par common stock, Recording and reporting stock transactions and cash dividends
at the beginning of 2011 the healthy life food company purchased equipment for 42 million to be used in the manufacture
a firm utilizes a strategy of capital rationing which is currently 250000 and is considering the following 2 projects
On September 30th, 12,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd