Calculate the amount tht should be recorded as the cost of equipment

Accounting
Tutor: None Selected Time limit: 1 Day

Item Punch Press.  Netbook value $30,240. List Price if brand new $54,000.  Appraiser's Estimate of Fair Value $36,000.

Oct 19th, 2015

Thank you for the opportunity to help you with your question!

If the company uses a historical cost method, then net book value, i.e. $30,240 will be recorded as cost of punch press, and if the company uses revaluation method, then fair market value i.e. 36,000 will be recorded as cost of the punch press.

Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 19th, 2015

thank you and keep posting for me.

Oct 19th, 2015

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