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

User Generated

geqnivf

Business Finance

Description

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

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

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.


Anonymous
Really helped me to better understand my coursework. Super recommended.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags