Stafford Press Essay Example

jobs at $30. 50 per hour, the difference representing an allowance for Overhead ($12. 15) and profit ($3. 5). Stafford Press paid $140,000 to purchase land on which the new plant was to be built. A rundown building, which Stafford’s appraiser said had no value, was standing on the plot of land. Stafford Press paid $21,235 to have the old building on the plot of land torn down. In addition, the company paid $13,950 to have permanent drainage facilities installed on the new land. A new composing machine with an invoice cost of $28,030 was purchased. The company paid $20,830 cash and received a trade-in allowance of $7,200 on a used piece of equipment.

The used equipment could have been sold outright for not more than $6,050. It had cost $12,000 new, and accumulated depreciation on it was $5,200, making the net book value $6,800. 6. The company erected a building at the new site for $561,000. Of this amount, $136,000 was paid in cash, and $425,000 was borrowed on a mortgage. 7. Trucking and other costs associated with moving equipment from the old location to the new location and installing it were $8,440. In addition, Stafford Press employees worked an estimated 125 hours on that part of the move that related to equipment.