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Higher Ltd. purchased a large piece of earth-moving equipment for $5,550,000. The vehicle had six...

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Accounting

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Higher Ltd. purchased a large piece of earth-moving equipment for $5,550,000. The vehicle had six tires, each worth $155,000 and expected to last two years. This is the maximum value that should be allocated to tires. The reminder of the purchase cost including incremental costs, was attributable 35% to the vehicle body. expected to last 6 years and 65% to the engine, expected to last 4 years. Other costs associated with the machine: HST, 15% of $5,550,000 cost Delivery Repair of incidental damage done during delivery Servicing and tune-up to get the machine ready to $ 832,500 4,400 6,650 15,500 use Required Prepare the journal entry to record the equipment and the associated expenditures. Record all items on the list plus the $5,550,000 invoice price. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of equipment. Note: Enter debits before credits

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