Higher Ltd. purchased a large piece of earth-moving equipment for $5,750,000. The vehicle had six...
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Higher Ltd. purchased a large piece of earth-moving equipment for $5,750,000. The vehicle had six tires, each worth $175,000 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 40% to the vehicle body, expected to last 6 years and 60% to the engine, expected to last 4 years. Other costs associated with the machine: 5862.500 HST, 15% of $5,750,000 cost Delivery Repair of incidental damage done during delivery Servicing and tune-up to get the machine ready to use 15200 7.250 17.500 Required: Prepare the journal entry to record the equipment and the associated expenditures. Record all items on the list plus the $5,750,000 invoice price. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transactions Journal entry worksheet Record the purchase of equipment. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry
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