ACCT 211 Homework 8 Accounting for Long-Term Assets Exercises Assignment solutions complete answers
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Rizio Company purchases a machine for $13,900, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $139 discount. Transportation costs of $314 were paid by Rizio. The machine required mounting and power connections costing $961. Another $453 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $240 worth of repairs were made.
Complete the below table to calculate the cost recorded for this machine.
Rodriguez Company pays $394,875 for real estate with land, land improvements, and a building. Land is appraised at $202,500; land improvements are appraised at $45,000; and the building is appraised at $202,500.
1. Allocate the total cost among the three assets.
2. Prepare the journal entry to record the purchase.
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product.
Determine the machine’s second-year depreciation and year end book value under the straight-line method.
Determine the machine’s second-year depreciation using the units-of-production method.
Determine the machine’s second-year depreciation using the double-declining-balance method.
