Please answer both the questio, answer in text form please (without image) Question 1 of 18. POn November 1, Beer Inc purchased a new machine for $200,000. The company paid $5,900 to have the machine delivered to its shop and $2,800 to installthe machine. In addition, Beer Inc paid $1,800 of interest to borrow money from the bank to purchase the machinery, and $5,000 to insure the machine for thefirst year of use. Beer Inc also paid $8,000 for improvements to the machine that are expected to enhance its efficiency.What total amount will the company capitalize on its balance sheet for this machine asset?Question 2 of 18Rosenbaum Ltd has equipment with a historical cost of $33,000 and accumulated depreciation of $15,000. If Rosenbaum Ltd sells the equipment andreceives $16,200 cash for the sale, what will be the effect of the sale on Rosenbaum Ltd's net income (ignoring taxes)? If this transaction will add to thecompany's net income, make your answer positive. If this transaction will reduce the company's net income, make your answer negative.Effect on Net Income:

Fixed assets means the assets which is used for many years in business and depreciated over the…

Answered: Question 1 of 18 On November 1, Beer…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 43E

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Year 1 January 1 Paid $294,000 cash plus $11,760 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $29,400 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $6,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,800. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,800 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,200 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. View transaction list Journal entry worksheet 1 2 3 4 5 6 Paid $294,000 cash plus $11,760 in sales tax and $1,700…
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