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On April 1, 2011, Company A purchased an equipment at the cost of $140,000. This equipment is estimated to have 5 year useful life. At the end of the 5th year, the salvage value (residual value) will be $20,000. Company A recognizes depreciation to the nearest whole month.

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(b) Machinery and equipment costs may properly include freight and handling, taxes on purchase, insurance in transit, installation, and expenses of testing and breaking-in. (c) If a building is purchased, all repair charges, alterations, and improvements necessary to ready the building for its intended use should be included as a part of the

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The vendor's credit terms are 2/10, n/30. Assume that equipment purchases are initially recorded gross. (b) Geddes traded in equipment with a book value of $2,000 (initial cost $8,000), and paid $9,500 in cash one month after the purchase. The old equipment could have been sold for $400 at the date of trade. (The exchange has commercial

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34. Desco Electronics, Inc. manufactures car radios. The direct material cost assigned to car radios that Desco started during the period but did not fully complete would be found in the ending balance of A) raw materials inventory. B) work in process inventory. C) finished goods inventory. D) both raw materials inventory and work in process

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9/8/2002 · Caputo said most short-line railroads don't have car repair crews because of the expense. "They farm those jobs out to outfits like us," he said. The bulk of business at Gunderson's Springfield facility, which works on about 1,500 cars each year, comes from repairing mechanically defective rail cars owned by large rail leasing companies

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On April 1, 2011, Company A purchased an equipment at the cost of $140,000. This equipment is estimated to have 5 year useful life. At the end of the 5th year, the salvage value (residual value) will be $20,000. Company A recognizes depreciation to the nearest whole month.

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administrative supplies and equipment. The cost of vehicles and other equipment used for fleet management (e.g., shop truck or tow truck). Cost of temporary rented and leased motor vehicles. Storage of motor vehicles at nonGovernment-owned locations (such as for new-vehicle storage and disposal storage).

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