e.. Edit-View- History-Bookmarks-People-Vindow, Help Connect x KPMG-Excel-AR.pdf
ID: 2525794 • Letter: E
Question
e.. Edit-View- History-Bookmarks-People-Vindow, Help Connect x KPMG-Excel-AR.pdfxKPMG-Excel-AR.pdf x MRecibidos (8) isaac.z x TEP tps://newconnect.mheducation.com/flow/connect.html oyd - Another Ghtps://www.netnix. P https://my.utep.ed. Vx Vortex Disk https:/cartoonhd.c a http:|/9cartoo Help Save & Exit S Saved ssment Grab Manufacturing Co. purchased a 10-ton draw press at a cost of $184,000 with terms of 1/15, n/45. Payment was made within the discount period. Shipping costs were $5,500, which included $320 for insurance in transit. Installation costs totaled $11,600, which included $5,200 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is: Multiple Choice $197,260. $199,260 $204.260. Prev 3 of 8 Next >Explanation / Answer
Answer is $ 199,260
Working note:
Purchasing cost of 10-to draw press = $ 184,000
(-) 1% discount (payment made within period) = $ 1,840
= Actual purchasing cost = $ 182,160
(+) Shipping cost include insurance in transit = $ 5,500
(+) Installation cost include taking out section of wall & rebuilding = $ 11,600
Total amount of capitalization cost of 10-ton draw press = $199,260
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