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University Of New South Wales Operations And Supply Chain Management Assignment Help - Capitalization


Question - The Martin Ready-Mix Company purchases a new 10-Yard delivery truck for $138,000. The following information is also available. Sales Taxes 9,500 Transit Insurance 500 Preparation Costs 1,000 Fleet Liability Insurance 750 Painting & Lettering 500 Weekly Driver's Wages 100 Prep Team Wages 500 The estimated life of the truck is 5 years (from 1/1/XX), with a salvage value of $10,000. The truck was purchased for cash. 1.Calculate the cost of the truck that should be capitalized. 2.Summarize the entry to the accounting equation (by account title) and give the journal entry to record the capitalization of the truck. Assets = Liabilities + Equity 3.Using the straight-line depreciation method, calculate the depreciation expense that w ...Read More

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