Kitchen Supply Corporation obtained land, a factory, and manufacturing equipment in a lump-sum purchase for $990,000. An appraisal set the value of the land at $592,800, the factory at $421,800, and the equipment at $125,400. Immediately after the purchase, the factory was renovated at a cost of $50,000. At what amount should Kitchen Supply record the factory?

Question

14-03-2022
Business

contestada

Kitchen Supply Corporation obtained land, a factory, and manufacturing equipment in a lump-sum purchase for $990,000. An appraisal set the value of the land at $592,800, the factory at $421,800, and the equipment at $125,400. Immediately after the purchase, the factory was renovated at a cost of $50,000. At what amount should Kitchen Supply record the factory?

Respuesta :

Otras preguntas

A team of 10 players is to be selected from a class of 6 girls and 7 boys. what is the probability that a randomly chosen team has 3 girls and 7 boys

Rectangle R has varying length L and width W but with a constant area of 4 square feet. a. Express the perimeter P as a function of length L. What type of funct

a culture started with 2000 bacteria. after 8 hours , it grew to 2400 bacteria. predict how many bacteria will be present after 19 hours.

Which nationality did Alexander the Great claim to be? A.Greek B.Roman C.Persian D.Aryan

The Nuclear Test-Ban Treaty signed by the United States, the Soviet Union, and Great Britain in 1963 stopped the testing of nuclear weapons in all locations, EX

Describe the cartoon's message about early agrarian societies in one sentence:

express 79.2% as a decimal.

A washer and dryer cost $793 combined, the washer costs $93 more than the dryer. What is the cost of the dryer?

Pete's doctor has advised him to change his diet in order to lose 15 pounds at a rate of about 1/2 pound a week. To accomplish the weight loss, Pete must

Solve for the indicated variable. s+4t=r for s

anthougo anthougo · Answer 1 · 2022-03-28T12:15:55+02:00

The amount at which Kitchen Supply Corporation should initially record the Factory immediately after the purchase is $421,800.

However, the Renovation Cost of $50,000 should increase the amount of the Factory to $471,800 ($421,800 + $50,000) immediately after the renovation.

Why is renovation cost capitalized?

The cost of renovation is usually capitalized because the cost needs to be recorded as an asset on the balance sheet, instead of an expense in the income statement.

Thus, the final amount the Factory should be recorded after the renovation is $471,800.

Learn more about asset capitalization at https://brainly.com/question/25999205