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Sonbull [250]
3 years ago
14

Cominsky Company purchased a machine on July 1, 2021, for $28,000. Cominsky paid $200 in title fees and county property tax of $

125 on the machine. In addition, Cominsky paid $500 shipping charges for delivery, and $475 was paid to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 6 years with a salvage value of $3,000.
Determine the depreciation base of Cominsky’s new machine. Cominsky uses straight-line depreciation.
Business
1 answer:
sammy [17]3 years ago
5 0

Answer:

Deprecation base=$26,300

Explanation:

Given Data:

Cost of machine=$28,000

Tax=$125

Fees=$200

Shipping charges=$500

Paid to contractor to build and wire a platform for the machine=$475

Salvage value=$3000

Useful life = 6 years

Required:

Depreciation base of Cominsky's new machine=?

Solution:

Deprecation base=Acquisition Cost-Salvage Value

Acquisition Cost:

It is the cost which involves the buying of asset and making the asset to work. In our case:

Acquisition Cost=Cost of machine+Tax+Fees+Shipping charges+Paid to contractor to build and wire a platform for the machine

Acquisition Cost=$28,000+$125+$200+$500+$475

Acquisition Cost=$29300

Deprecation base=Acquisition Cost-Salvage Value

Deprecation base=$29300-$3000

Deprecation base=$26,300

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Answer:

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Explanation:

In order to find the dollar profit or loss return we will add the dividend and selling price because that the dividend plus the selling price is the cash that Travis receives or the positive cash and we will subtract the buying price from it because it is the negative cash flow. So we will add all the positive cash flows and subtract negative cash flow from it in order to find the dollar profit loss or return.

Selling price = 27.65

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Dollar profit loss or return = 28.50-31.5=-3

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In order to find the holding period return we will divide add the dividend and selling price , subtract buying price from it and then divide it by buying price.

(27.65+0.85-31.5)/31.5= -0.09 = -9%

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Explanation:

This is the complete question

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There was a previous question like that, so i remember the answer.

~<u>rere</u>

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