Acme Boxplant purchased new equipment for their box plant. One item was a die cut machine and the other, a corrugator. Both machines are used to manufacture boxes. The die cut machine costs $900,000, and the corrugator costs $1.5 million. Acme purchased the equipment, including the sales tax, on account, with amounts due in 45 days. Additional costs were paid in cash:Die Cut MachineSales tax$54,000Freight charges55,000Insurance8,500Installation of the die cut75,000Corrugator Sales tax$90,000Freight charges 55,000Insurance8,500Installation of the corrugator75,000Personnel training costs to run machine50,000Trial Runs 10,000 Required:Use the ACTTemplate file to answer the following:What amount should Acme capitalize the die cut machine?What amount should Acme capitalize the corrugator?Record the necessary journal entries related to the expenses for the die cut machine and the corrugator.Provide comments on the spreadsheet to explain the rationale for the amounts recorded.
actjan21.xlsx

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Student’s Name
Mod 6
Questions 1 & 2
Capitalize Die Cut Machine
Items
Total cost
$0
0
0
0
0
$0
Capitalize Corrugator Machine
Items
$0
0
0
0
0
0
0
Total cost
$0
Question 3
Journal Entries
Name of Account
Name of Account
Name of Account
0
Name of Account
Name of Account
Name of Account
0
0
0
0
0

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