Purchase Solution

Reds Company: Compute the total amount recorded for the 1) Equipment 2) furniture 3) machines 4) tools

Not what you're looking for?

Ask Custom Question

On 11/3/05, Reds Co was the winning bidder at the local auction. The winning bid was $115,000 for a collection of stuff to be used in the business. The following values were obtained on this same date from an independent appraiser for the items won:
Equipment $29,000
Furniture $30,000
Machines $46,000
Tools $35,000

The appraised values given by the independent appraiser assumes that each item is in excellent working condition. Reds Co pays an additional $9,000 for the equipment and $6,000 for the machines to bring each item to an excellent working condition. The furniture need to be assembled, so Reds Co spends another $3000 for assembly.

Compute the total amount recorded for the 1) Equipment 2) furniture 3) machines 4) tools

CLUE must match: Combined amount recorded for the machines and tools are $17,000 MORE than the combined amounts recorded for the equipment and furniture.

I have so far: Total Appraised Value = $140,000
Equip = 29,000 /140,000 * 115000 + 9000=32821.43
Furniture = 30,000/140,000 * 115000 + 3000 = 27642.86
Machines = 46,000/140,000 * 115000 + 6000 = 43785.71
Tools = 35,000/140,000 * 115000= 28750.00

(32821.43 + 27642.86) - (43785.71 + 28750.00) = 12071.42--Does not match clue

Can you help me figure out what is wrong?

Purchase this Solution
Solution Summary

The solution discusses the appraisal vs. the winning bid. It computes the total amounts recorded.

Solution Preview

Total Appraised Value = $140,000
Value required to bring the items into excellent condition = $15,000
The ...

Purchase this Solution
Free BrainMass Quizzes
Learning Lean

This quiz will help you understand the basic concepts of Lean.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Motivation

This tests some key elements of major motivation theories.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Simple Rate of Return and Payback Analysis

    Also, the company will not purchase equipment unless the equipment has a payback period of 4 years or less. Solve: 1. For machine A. a.

  • Faith's Fine Furniture Corporation and Faye's Fashions

    Write a brief explanation of transactions 1 through 6. Explain any assumptions that you made. 2. Compute the ending balance in each account and prepare a classified balance sheet for Faith's Fine Furniture Company on January 7, 2006. 3.

  • Eiffel: product cost per unit; Handcappi horizontal statement model

    Problem 2 Handcappi Manufacturing Company experienced the following accounting events during its first year of operation. Except for the depreciation adjusting entries, all transactions are cash transactions. 1.

  • Multiple Choice

    In sum of year digits the depreciation amount is calculated as, say for 5 year life, the sum of year is 5+4+3+2+1=15 Depreciation in year 1 is 5/15, in year 2 it is 4/15 and so on and so the depreciation declines by a constant amount each year Your

  • Chipper Company Capital Transactions

    Regardless of the 'deal' Chipper got, true cost is the value recorded on the books for the furniture and equipment. 6.

  • Ratio analysis & Adjusting and closing entries

    254067 Compute 8 ratios for Tyson Company; Prepare adjusting entries for Fisk Corporation 1) The following information pertains to Tyson Company: Cash $ 40,000 Accounts receivable

  • How do you calculate the correct net income for Frazz Corporation?

    The amount paid is for 3months of 2010 also and that would not be a expense for 2009 under the matching concept. 3 months rent = 48,000/12 X 3 = 12,000 The entire amount was charged to expense.

  • Cost of land and building

    Questions 1 and 2 are based on the following information: Poin Company recently incurred the following costs: (1) Purchase price of land and dilapidated building $280,000 (2) Real estate broker's commission 14,000 (3) Net demolition costs of dilapidated

  • Capital Budgeting decisions - NPV, Ranking, payback, return

    Also, the company will not purchase equipment unless the equipment has a payback period of 4 years or less. Required: 1. For machine A: a.

View More Related Solutions