Queue,Incorporated incurred the following expenditures for the purchase and use of a machine,which was placed into service on January 1,2011:
Required:
1.Determine the total costs that should be capitalized into the machine account.What is the total? Explain how you decided which costs to capitalize.
2.Determine the total operating expenses associated with using the machine for the year ended December 31,2011.Assume the machine has an estimated 5-year useful life and an $8,000 salvage value.Explain how you decided which costs to expense.

Question

Queue,Incorporated incurred the following expenditures for the purchase and use of a machine,which was placed into service on January 1,2011:
  Required:
1.Determine the total costs that should be capitalized into the machine account.What is the total? Explain how you decided which costs to capitalize.
2.Determine the total operating expenses associated with using the machine for the year ended December 31,2011.Assume the machine has an estimated 5-year useful life and an $8,000 salvage value.Explain how you decided which costs to expense.

Quizplus · Accepted Answer

The Answer of Queue,Incorporated incurred the following expenditures for the purchase and use of a machine,which was placed into service on January 1,2011:
  Required:
1.Determine the total costs that should be capitalized into the machine account.What is the total? Explain how you decided which costs to capitalize.
2.Determine the total operating expenses associated with using the machine for the year ended December 31,2011.Assume the machine has an estimated 5-year useful life and an $8,000 salvage value.Explain how you decided which costs to expense.

Queue,Incorporated Incurred the Following Expenditures for the Purchase and Use