Trinkle Compa ny made several purchases of long-term assets in 2018. The details

Question

Trinkle Compa ny made several purchases of long-term assets in 2018. The details of each purchase are presented here New Office Equipment 1. List price: $35,500; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $710 3. Installation: $500. 4. Cost to repair damage during unloading: $546 5. Routine maintenance cost after eight months: $130 Basket Purchase of Copier, Computer, and Scanner for $50,800 with Fair Market Values 1. Copier, $21,420. 2. Computer, $10,404 3. Scanner, $29,376. Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $81,900 2. Demolition of building. $5,400. 3. Lumber sold from old building, $1,500 4. Grading in preparation for new building, $9,700 5. Construction of new building, $298,000,

Explanation / Answer

Calculate Amount to be capitalized in the asset accounts :-

For Office Equipment :-

Basket Purchase :-

Land And Building :-

Working Note :-

Particulars Amount ($) Price 35500 Add : transportation-in 710 Add : Installation 500 Less : Discount ($35500*2%) (710) Total 36000

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