Final answer:
The correct journal entry for the acquisition of a used machine with additional costs would be debiting the asset account for $86,915. The correct option is D.
Step-by-step explanation:
To journalize the acquisition of a used machine with additional costs, we need to consider the various expenses associated with the purchase. The purchase price of $30,021 is debited to the asset account. The overhaul cost of $9,914, installation costs of $4,449, and special acquisition fees of $14,084 are also debited to the asset account. Thus, the correct option would be (d) $86,915.
The total cost debited to the asset account for the acquisition and preparation of the used machine is $58,468, which is the sum of the purchase price, overhaul costs, installation costs, and special acquisition fees.
The acquisition of a used machine and its related costs should be capitalized as a single asset on the balance sheet. This means that the purchase price of the machine, the overhaul costs, the installation costs, and any special acquisition fees should all be added together to determine the total cost of the asset. Specifically, we add the purchase price of $30,021, overhaul costs of $9,914, installation costs of $4,449, and special acquisition fees of $14,084. The sum of these amounts is $58,468, which should be debited to the asset account as it represents the total cost necessary to get the asset ready for its intended use.