Answered

Get comprehensive solutions to your problems with IDNLearn.com. Ask your questions and receive detailed and reliable answers from our experienced and knowledgeable community members.

Longshore Group bought a piece of equipment for use in its operations under the following terms: 5 annual payments of $64,000 for the equipment, including interest. Although the list price of the equipment was $315,000, Longshore Group could have bought it for $300,000 cash. Salvage value is $20,000. Which amount should Longshore Group use to record the purchase of the machine on its books

Sagot :

Abiolataiwo2015idn

Answer:

$300,000

Explanation:

Calculation for Which amount should Longshore Group use to record the purchase of the machine on its books

Amount to record machine purchased=($64,000*5 annual payment)-$20,000

Amount to record machine purchased=$320,000-$20,000

Amount to record machine purchased=$300,000

Therefore the amount that Longshore Group should use to record the purchase of the machine on its books is $300,000

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Thank you for visiting IDNLearn.com. We’re here to provide clear and concise answers, so visit us again soon.