Khan Company made several purchases of long-term assets in 2012. The details of each purchase are presented here.New Office Equipment1. List price: $40,000; terms: 1/10 n/30; paid within the discount period.2. Transportation-in: $800.3. Installation: $500.4. Cost to repair damage during unloading: $500.5. Routine maintenance cost after eight months: $120.Basket Purchase of Office Furniture, Copier, Computers, and Laser Printers for $50,000 with Fair Market Values1. Office furniture, $24,000.2. Copier, $9,000.3. Computers and printers, $27,000.Land for New Headquarters with Old Barn Torn Down1. Purchase price, $80,000.2. Demolition of barn, $5,000.3. Lumber sold from old barn, $2,000.4. Grading in preparation for new building, $8,000.5. Construction of new building, $250,000.RequiredIn each of these cases, determine the amount of cost to be capitalized in the asset accounts.View Solution:
Khan Company made several purchases of long term assets in 2012