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

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

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.

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Oct 19th, 2015

thank you and keep posting for me.

Oct 19th, 2015

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