alladin company purchased machine 201 on may 1 2014 the following information relati 684904
Aug 30, 2021 | Uncategorized
Alladin Company purchased Machine #201 on May 1, 2014. The following information relating to Machine #201 was gathered at the end of May.
Price |
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$136,850 |
Credit terms |
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2/10, n/30 |
Freight in |
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$ 1,288 |
Preparation and installation costs |
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$ 6,118 |
Labor costs during regular production operations |
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$16,905 |
It is expected that the machine could be used for 10 years, after which the salvage value would be zero. Alladin intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $2,415. The invoice for Machine #201 was paid May 5, 2014. Alladin uses the calendar year as the basis for the preparation of financial statements.
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