Calculate the cost assigned to the equiptment. On April 1, 2020, Renfro Corporat

Question

Calculate the cost assigned to the equiptment.

On April 1, 2020, Renfro Corporation purchased land, a building, and some equipment for $633,000. The following information is available concerning the property purchased: Current Market Value Land.. 148,350 374,100 Before the property could be used, Renfro had to spend $12,660 to renovate the building and $7,410 to put the equipment in working order. The cost that was assigned to the building totaled $379,800 Calculate the cost assigned to the equipment.

Explanation / Answer

Calculation of cost assigned to the equipment Total purchase cost $633,000.00 Less : Cost assigned to Building $379,800.00 Less : Market value of Land $148,350.00 Purchase cost of equipment $104,850.00 Add : Cost incurred to put equipment in working order $7,410.00 Cost assigned to Equipment $112,260.00

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