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

Q

Determine the output f for the logic circuit shown below Minimize the output f function...

Physics
Q

Select the correct choice that completes the sentence below This is a reading assessment question...

Statistics
Q

Read the graph to determine if It goes up or down to the left and...

Algebra
Q

Simplify 2 4y 12 2 3y 18 Oy 2 O E A 4y 12 3y...

Algebra
Q

8 Graph y sin2x 3 15 1 0 1 3 2 X sinx Sin2x 4...

Algebra
Q

Please show how the table is to be filled in with correct answers...

Accounting
Q

Woodland Inc. completed these long-term investment transactions during 2023 and 2024. January 14,2023...

Accounting
Q

company receives interest on 40000 8% 5 year note revceviable each april1 what was the...

Accounting
Q

Goofy Tech Inc. accepted an advance of $3,600 on November 1, 2021, for providing IT...

Accounting
Q

- Schedule of standard deductions STANDARD DEDUCTION Filing Status Married individuals filing joint returns...

Accounting
Q

Using information supplied in the Cactus Spine Country Club Case Study: Draw an Entity...

Accounting
Q

Cost of Services Produced Jean and Tom Perritz own and manage Happy Home Helpers, Inc....

Accounting