Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 17. the merchant of tennis corporation purchased a

17. The Merchant of Tennis Corporation purchased a tennis-ball launching machine by paying $3,000...

70.2K

Verified Solution

Question

Accounting

17. The Merchant of Tennis Corporation purchased a tennis-ball launching machine by paying $3,000 cash and signing a notes payable for $2,000. Additional costs associated with the purchase include sales tax of $200, prepaid insurance for four months of $400, freight costs of $100, installation costs of $150, testing costs of $50, and first year property taxes of $800. What is the cost that should be capitalized to the Machinery asset account? A) $6,300 B) $5,500 C) $6,700 D) $4,700 E) None of the above
image
17. The Merchant of Tennis Corporation purchased a tennis-ball launching machine by paying $3,000 cash and signing a notes payable for $2,000. Additional costs associated with the purchase include sales tax of $200, prepaid insurance for four months of $400, freight costs of $100, installation costs of $150, testing costs of $50, and first year property taxes of $800. What is the cost that should be capitalized to the Machinery asset account? A) $6,300 B) $5,500 C) $6,700 D) $4,700 E) None of the above

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Calculus
1.2K views

Divide.(-2x4-12x-4x +15x+18) (-2x+4)Write your answer in the following form: Quotient +

Statistics
1.2K views

Assume the life of a roller bearing follows a Weibull distribution with parameters β=2 and δ=7,500 hours. Determine...

Accounting
1.2K views

In Lehman Brothers' case, why should E&Y have considered the Repo 105 transactions to be material...

Biology
1.2K views

What is meant by the description antiparallel regarding the two strands that make up the...

Algebra
1.2K views

32 In a two hour TV event the commercials show 16 of the tim How...

Accounting
1.2K views

How can business partnership conflicts be resolved amicably among individuals who may no longer agree...

Accounting
1.2K views

Malive Park Department is considering a new capital investment. The following information is available on...

Accounting
1.2K views

On January 1, 2017, Oriole Corporation purchased a newly issued $1,550,000 bond. The bond matured...

Accounting
1.2K views

Crane Corporation follows IFRS. Prior to 2022, the accounting income and taxable income for Crane...

Accounting
1.2K views

Exercise 13-7 (Algo) Sell or Process Further Decisions [LO13-7] Dorsey Company manufactures three products from...

Accounting
1.2K views

Selected balance sheet information and the income statement for Fountainhead Corporation for the current year...

Accounting
1.2K views

Problem 5 The following pertains to Bongseok Corporation on December 31,2023: ...