Prejudging: judging someone before the facts.
Answer:
The correct answer is $18920.
Explanation:
Boone Company purchased a piece of machinery by paying $18,000 cash.
In addition to the purchase price, the company incurred $800 freight charges.
Estimated useful life of the machine is 5 years and will require $600 for insurance over that period.
So insurance money for a year = $ (
) = $120.
Boone Company would record the cost of the machine at $ ( 18000+ 800+ 120) = $ 18920.
Answer:
$48,800
Explanation:
Ratio = 2:3
Total investment:
= Benson capital + Orton capital + Ramsey capital
= $60,000 + $40,000 + $20,000
= $120,000
Total Equity of Ramsey:
= 40% of Total investment
= 0.4 × $120,000
= $48,000
Old partners contribution:
= Equity of Ramsey - Ramsey capital
= $48,000 - $20,000
= $28,000
Benson’s capital balance after admitting Ramsey:
= Benson’s capital - Old partners contribution(2 ÷ 5)
= $60,000 - [$28,000 × (2 ÷ 5)]
= $60,000 - $11,200
= $48,800
SORRY I NEED MORE INFO what exactly are you looking for?