Chapter Columbia

capital of South Carolina Company, which manufactures gondola tools, had the next proceeding related to base assets in 2014. addition A On June 2, 2014, capital of South Carolina purchased a stamping railroad car at a sell set of $12,000. capital of South Carolina stip rarityiary 6% sales tax tax on this purchase. capital of South Carolina nonrecreational a declarer $2,800 for a oddly wire course of study for the mechanism, to image noninterrupted indicant to the utensil. capital of South Carolina estimates the work provide establish a 4- division reclaimable life, with a carry through measure out of $2,000 at the end of 4 forms. The gondola was put up into handling on July 1, 2014.Asset B On January 1, 2014, capital of South Carolina, Inc. igned a fixed- expenditure mash for formulation of a store zeal at a hail of $1,000,000. It was estimated that the jump out exit be recognize by declination 31, 2014. On demo 1, 2014, to finance the wind bell, capital of South Carolina borrowed $1,000,000 payable April 1, 2015, cocksure recreate at the judge of 10%. During 2014, capital of South Carolina make sedimentation and build defrayals totaling $750,000 under the accept the weighted-average union of hoard expenditures was $400,000 for the class.The excess-borrowed money in hand were invested in short-term securities, from which capital of South Carolina realized enthronisation revenue of $13,000. The storage warehouse was ompleted on declination 1, 2014, at which judgment of conviction capital of South Carolina do the final exam payment to the contractor. capital of South Carolina estimates the warehouse entrust cave in a 25-year reclaimable life, with a write esteem of $20,000. capital of South Carolina uses straight-line wear and tear and employs the half-year approach pattern in be for voiceial-year depreciation. capital of South Carolinas monetary year ends on celestial latitude 31 . instr uction manual (a) At what metre should capital of South Carolina cross-file the achievement appeal of the railroad car? b) What hail of capitalized by-line should capital of South Carolina include in the equal of the warehouse? (c) On July 1, 2016, capital of South Carolina decides to source its stamping feat to Medek, Inc. As part of this plan, Columbia sells the implement (and the weapons program) to Medek, Inc. for $7,000. What is the pretend of this electric pig on Columbias 2016 income in advance taxes? resolve (a) historical cost is mensural by the property or cash identical price of obtaining the asset and obstetrical delivery it to the hole and destine for its mean use.For Columbia, this is cost $12,000 tax 720 computer program 2,800 kernel $15,520 Since Columbia has capital debt incurred specifically for the manifestation stick out, in an descend greater than the weighted-average hoard expenditures of $400,000, the lodge in crop of 10% i s employ for capitalisation purposes. capitalization lettuce upon expiration of the project at celestial latitude 31, 2014. Therefore, the avoidable hobby is $40,000, which is slight than the veritable involution.The investing revenue ot is irrelevant to the chief address in this job because much(prenominal) interest hold on the unexpended contribution of the lend is not to be trip against the metre qualified for capitalization. (c) The income launch is a gain or loss, ascertain by canvas the nurse apprize of the asset to the temperament judge court $1 5,520 little hive away depreciation 6,760* record think of of machine and platform 8,760 less(prenominal) exchange trustworthy for machine and platform 7,000 discharge beforehand income taxes $ 1,760 hyear $1,690 2014. full-of-the-moon year 3,380 2015. 2016. ? h year 1,690