Answer: $554,450
Explanation:
When capitalizing the cost of a new fixed asset or PPE such as equipment, it is important that ALL costs associated with setting the equipment are capitalized.
In this case that includes the Sales Tax, the concrete slab, and the installation charges as well as the purchase price.
Wildhorse Co. paid in the discount period so they are liable for the 2% discount.
Calculating that would be,
= 450,000 * ( 1 - 0.02)
= $441,000 is what they paid minus the discount.
Adding everything up then would be,
= 441,000 + 96,250 + 5,900 + 11,300
= $554,450
The total cost of the new machinery is $554,450
Answer:
The option which is not a task of the bankruptcy trustee is;
Represent the debtor when meeting with creditors
Explanation:
In a case of bankruptcy a bankruptcy trustee is assigned by the court and to whom the case information is handed to perform the following tasks
1) Converts the collected company assets to money
2) Assess the creditors (owed by the debtor) proof of claims
3) Allocate monetary refunds to the creditors
4) Upholds or refuse claimants to specific debts
5) Completes tax and other financial reports that are submitted to government agencies
Beach Bake, a small maker of a new sunscreen, needs financing to build a warehouse. The owner wants to avoid personal loans. Asset-based financing I would recommend.
What is asset based financing?
Working capital and term loans are given to businesses using a specific technique called asset-based finance. As collateral, it uses real estate, accounts receivable, machinery, equipment, and inventories. When a loan to a corporation is backed by one of the company's assets, it is effectively referred to as a secured loan.
How do asset-based loans work?
Asset-based lending refers to a loan or line of credit given to a company and secured by a piece of property. Inventory, equipment, accounts receivable, and other balance-sheet assets are just a few examples of the different types of collateral utilized in asset-based lending.
Learn more about secured loan: brainly.com/question/17077155
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Answer:
$100,000
Explanation:
According to the internal revenue service ''<u>In most situations, the basis of an asset is its cost to you.</u> <u>The cost is the amount you pay for it in cash</u>, debt obligations, and other property or services. Cost includes sales tax and other <u>expenses connected with the purchase</u>.''
Therefore Sebastian's basis in these two assets is unconnected with the fair market value of the assets but with the cost.
Purchased Equipment is always recorded at its acquisition cost or its net book value, that is after deducting the accumulated depreciation
. In the scenario we have no depreciation figures, hence the basis is the cost of $100,000
