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Answer:
$72,700
Explanation:
According to IAS 16, the cost of an asset includes all the costs that are related to its purchase and until it is put to use. These costs include purchase price , commission , transportation , installation legals and warranties.
Please note that the cost of repairs during installation is not capitalized but expended,
Workings.
Cost of purchase - $70000
Sales tax $700
Freight - $800
Insurance - $150
Installation cost - $1050
Total Cost - $72,700
Instrumentality.
Since Rick believes that working hard will result in better incentives and his attitude towards these incentives is not known, we can say that in the context of expectancy theory of motivation, that this scenario best reflects the factor of <u>instrumentality</u>.
Vroom's expectancy theory of motivation attempts to explain that people choose to perform certain actions over other in a manner that aims to maximize pleasure and reduce pain to lowest possible extent.
There are three factors that affect motivation : expectancy, instrumentality and valence.
Expectancy : refers to the belief of working harder with the expectation of attaining the goals set within an organization.
Instrumentality : refers to the belief that one will be rewarded if certain goals are met. These rewards may take the form of increased wages, recognition, increased incentives etc.
Valence: refers to the value attached by the worker to the reward that has been attained.
Answer: I have done this before and the answer is c
Explanation: