Answer:
"charged to profit or loss"
Explanation:
According to the acquisition method, acquisition-related (transaction) costs are costs the acquirer incurs to effect a business combination. For example, the cost of the advisory, legal, accounting, valuation or consultancy fees, must not be included in the cost of the acquisition. These costs must be treated as an expense as incurred and written off to profit or loss.
The amount of transaction costs associated with an acquisition and written off during the period to profit or loss must be disclosed in a note to the financial statements.
So based on the above discussion the answer to the question shall be "charged to profit or loss"
The career Development arranging procedure is identified with the progressions expected in learning and aptitudes in transit to a profession objective is moves.
<span>Career Development is the deeply rooted procedure of overseeing learning, work, recreation, and moves keeping in mind the end goal to move toward a by and by decided and advancing favored future.</span>
Answer:
Explanation:
Cost = 68500
Date = January 1, 2017
December 31, 2019
Cost = 68500
Acc. Depreiciation = -34,250 (68500/6)*3
book Value = 34,250
Exchanged asset cost = 35000
Trade in gain = 750
Accounting Entries
Asset 35000
Accumulated depriciation 34250
Asset 68500
Gain on Exchange 750
Answer:
When FOB shipping point is used, buyer pays the freight. When FOB destination is used, the seller pays the freight.
a. Purchased merchandise with freight costs of $650. The merchandise was shipped FOB shipping point.
- the Box Company is responsible for paying the freight charges ($650) and they are classified as product costs.
b. Shipped merchandise to customers, freight terms FOB shipping point. The freight costs were $310.
c. Purchased inventory with freight costs of $1,500. The goods were shipped FOB destination.
d. Sold merchandise to a customer. Freight costs were $520. The goods were shipped FOB destination.
- the Box Company is responsible for paying the freight charges ($520) and they are classified as period costs.
Answer:
When buying PPE, the way to record it is to capitalize every expense that enabled the PPE to be brought to the location required and then set up for use. This includes the actual cost of the machine, the sales taxes (part of purchases price so must be included), the shipment of the machine as well as installation costs.
The Insurance paid (prepaid) is an expense for the period and so will not be capitalized.
Total cost of the machine therefore is;
= 65,000 + 5,500 + 900 + 1,800
= $73,200
Only the machine and the sales tax were purchased on account.
= 65,000 + 5,500
= $70,500
The rest in cash.
Journal Entry is
DR Machinery $73,200
DR Prepaid Insurance $600
CR Cash $3,300
CR Accounts $70,500
(To record purchase of equipment)
