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Rama09 [41]
3 years ago
5

Watauga Company purchased equipment on July 1, 2017 for $70,000. Sales tax on the purchase was $700. Other costs incurred were f

reight charges of $800, insurance during shipping of $ 150, repairs of $1,300 for damage during installation, and installation costs of $1, 050. What is the cost of the equipment?
A. $70,000
B. $74,000
C. $71,500
D. $72,700
Business
1 answer:
natima [27]3 years ago
6 0

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

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Answer:

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Explanation:

Named after British lawyer and economist Ronald Coase (<em>1910-2013</em>) the Coase Theorem states when there are competitive markets and no transaction costs bargaining will lead to an efficient and mutually beneficial outcome. The theorem affirms that when property rights are defined and divided, parties will gravitate to the most efficient and beneficial outcome.

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3 years ago
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Answer:

C. $17,500

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Export management companies refers to firms that helps in the distribution of goods produced by other firm's in the international market. They export goods on behalf of other firm's.

Export management companies are independent companies that provides support services for other firms engaged in exporting. Services rendered by export management companies includes: insuring, billing, shipping, warehousing among others.

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Answer:

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