Question #1 North Carolina Manufacturing Co. purchased a new industrial press and installed it in its main processing building. The press had a list price of $75,000. The seller agreed to allow a 12%...

Question #1 North Carolina Manufacturing Co. purchased a new industrial press and installed it in its main processing building. The press had a list price of $75,000. The seller agreed to allow a 12% discount because North Carolina paid cash. Taxes were 6% of the net purchase price. Delivery terms were FOB shipping point. Freight cost amounted to $1,500. North Carolina hired two workers to operate the press. The new employees spent their first two months of employment working on installation of the press. The new workers’ annual salaries are $24,000 per year (each). The cost of the company’s liability insurance policy increased by $4,340 per year as a result of the acquisition of the press. Modifications to the building to allow for installation of the new press cost $2,600. Costs incurred during installation and set-up (calibration, scrap, etc.) totaled $600. The press has an eight-year useful life and an expected salvage value of $8,400.

Required

Determine the amount to be capitalized in an asset account for the purchase of the press. Youmust show your work for complete credit.

Total Acquisition Cost: _________________

Question #2
When does Goodwill occur? How is Goodwill calculated? How is Goodwill classified in the financial statements?