Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. determining amount of pp&e to capitalize amp

Determining Amount of PP&E to Capitalize AMP Corporation purchased new manufacturing equipment with an...

50.1K

Verified Solution

Question

Accounting

Determining Amount of PP&E to Capitalize
AMP Corporation purchased new manufacturing equipment with an invoice cost of $60,000, plus sales tax of 5% on the selling price. AMP also incurred a freight charge of 8% of the selling price to obtain the equipment and paid an outside consultant $600 for installation of the equipment. AMP retained the services of the consultant for an additional few days for $1,200 to help employees train on the equipment's operations. Insurance premiums increased by $360 for the year related to the equipment usage. The company also received $1,200 for the residual value of the machine that was replaced.
Determine the amount AMP should capitalize for equipment related to this purchase. $67,560
image

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

Biology
1.2K views

Why are type IV hypersensitivities different from the other three types.

Physics
1.2K views

A Honda Civic travels in a straight line along a road. Its distance x from a...

Accounting
1.2K views

Lindsey Contractors' borrowing agreements make certain demands on the business. Lindsey's Long-Term Debt may not exceed Stockholder's...

Biology
1.2K views

Ebola may fall under the form of transmission called direct droplet transmission True False

Geometry
1.2K views

Given the vector 6 12 6 12 1 with a directional angle of

Geometry
1.2K views

9 10 m X 56 10 Find w and x 4 32 10 ft 8...

Basic Math
1.2K views

If the linear system has infinitely many solutions then k and h 7x 7y 4z...

Algebra
1.2K views

Use the information listed below to solve parts a through h demanded in hundreds p...

Accounting
1.2K views

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7,...

Accounting
1.2K views

Your Discussion should be a minimum of 250 words in length and not more than...

Accounting
1.2K views

Requirement 11. Prepare the budgeted operating income statement for Skubas, Inc., for January 2021. Requirement...

Accounting
1.2K views

A company reports the following: Net income $750,000 Preferred dividends 150,000 Average stockholders' equity 5,000,000...