1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lana71 [14]
3 years ago
9

Item Hare’s Net Book Value on the Date of Sale List Price of Same Item If New Appraiser’s Estimate of Fair Value Punch press $ 1

0,250 $ 19,000 $ 16,000 Lathe 8,250 9,000 5,000 Welder 2,730 5,000 3,050 Required: a. Calculate the amount that should be recorded by Crow Co. as the cost of each piece of equipment
Business
1 answer:
Zinaida [17]3 years ago
7 0

Answer:

  • Punch Press - $12,502
  • Lathe - $3,908.52
  • Welder - $2,344.36

Explanation:

Cost will be allocated based on proportion of total Appraiser's estimate of fair value.

Total Appraisal Estimate = 16,000 + 5000 + 3,050

= $24,050

Total Purchase Price = Purchase price + Installation cost

=17,000 + 1,800

=$18,800

Punch Press

Punch Press proportion = \frac{16,000}{24,050} * 100

= 66.5%

Punch Press Cost = 66.5% * 18,800

= $12,502

Lathe

Lathe proportion = \frac{5,000}{24,050} * 100

= 20.79%

Punch Press Cost = 20.79% * 18,800

= $3,908.52

Welder

Welder proportion = \frac{3,000}{24,050} * 100

= 12.47%

Punch Press Cost = 12.47% * 18,800

= $2,344.36

Note; There are multiple variants of this question so be sure to check the figures to ensure it is the right one.

You might be interested in
A Co. showed the following values for its inventory as of the end of its fiscal year: Historical cost $100,000 Current replaceme
Levart [38]

Answer:

$90,000

Explanation:

The reason is that the International Accounting standard IAS 3 Inventories says that the asset must be reported at lower of:

Cost &

Net realizable value

Here the cost is $100,000 and NRV is $90,000, which means that the inventory must be reported at $90,000 which is the lower value.

4 0
3 years ago
Read 2 more answers
JB Enterprises has $2.5 million of current assets and $1.5 million of current liabilities. Therefore, their current ratio is 1.6
MrRa [10]
It would be a 2.5 ratio
3 0
3 years ago
A cash budget:______.A. Would be as useful to a business which makes sales only on a credit basis, as it is to a business making
Umnica [9.8K]

Answer:

A. Would be as useful to a business which makes sales only on a credit basis, as it is to a business making sales for cash.

Explanation:

A cash budget shows the cash flow for a business over a certain time period in which the budget determines if the business has enough cash to operate.

4 0
3 years ago
Valley spa purchased $7,800 in plumbing components from tubman co. valley spa signed a 60-day, 10% promissory note for $7,800. i
lapo4ka [179]

Answer:

The journal entry is given as follows;

Explanation:

Accounts Receivable-Valley Spa           Dr.$7,930

Interest Revenue         (7,800*10%*2/12) Cr.$130

Notes Receivable                                    Cr.$7,800

8 0
3 years ago
The estimator determines who is responsible for what cost portion of supplying the temporary utilities.
MA_775_DIABLO [31]
This answer would be true
3 0
3 years ago
Read 2 more answers
Other questions:
  • Shirine has been debating between two career pathways in finance. She creates a Venn diagram to compare the two careers. In a Ve
    12·1 answer
  • Bobby is speaking to his friend and says, "this musical is going to cost me $60 when I buy the ticket." His friend corrects him
    5·1 answer
  • The Treaty of Paris gave __________ to the United States.
    12·2 answers
  • In capitalism, most businesses have a profit motive. Describe at least one reason that businesses with a profit motive may be he
    15·1 answer
  • Lisa Smith decided to start her CPA practice as a professional​ corporation, Smith​ CPA, PC. The corporation purchased an office
    8·1 answer
  • Not all moving violations will appear on your driving record
    12·2 answers
  • On October 1, 2019, Priscilla purchased a business. Of the purchase price, $92,000 is allocated to a patent and $552,000 to good
    12·1 answer
  • Define present value.a. The present value is the value today of a sum of money to be received in the future and in general is le
    15·1 answer
  • 2. As a teenager, why might creating a budget be important?
    5·2 answers
  • Employee empowerment is another term used to describe ________, an objective of the employment relationship in which workers are
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!