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d1i1m1o1n [39]
3 years ago
12

A company purchased new equipment for $60,000. The company paid cash for the equipment. Other costs associated with the equipmen

t were: transportation costs, $1,000; sales tax paid $3,000; and installation cost, $2,500. The cost recorded for the equipment was:
Business
1 answer:
olya-2409 [2.1K]3 years ago
3 0

Answer: The cost of the equipment is $66,500.

Explanation: Under IAS 16 Property, Plant and Equipment, the cost of an asset comprises:

  • purchase price plus import duties and taxes
  • any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management
  • the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located

In the question, $60,000 was the purchase price, the transportation cost of $1,000 was necessary to bring the asset to the location intended by management, $3,000 was the sales tax and the installation cost of $2,500 was also necessary for the asset to function as intended by management. So all these costs would be capitalized as the cost of the equipment as $66,500.

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Workers and firms often enter into contracts that fix prices or wages, sometimes for years at a time. If the price level turns o
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Answer: Contract are mostly prevalent in the Union jobs which are the jobs in which employees are represented by an organizations which act as an intermediary between the employees and their employers.

This is done in order to ensure that employees are protected from future inevitable inflation that may come unexpectedly as it usually does.

3 0
3 years ago
Many firms advertise. What effect does advertising have on firm​ profits? One possible effect of advertising is to:_________
spayn [35]

Answer:

Option b: Increase profits by shifting the demand curve for the product to the right

Explanation:

Marketing is simply all the activities necessary for a firm to sell a product to a consumer. Firm engages in marketing to make their brand or product known.

Advertising has a whole lot of effect in the society at large. There are economic effect, social effect and others.

effects of advertising on the prices of goods and service includes exerting an upward pressure on prices that is the Cost of advertising is passed along to consumers and Advertising makes us less price sensitive) and exerting a downward pressure on prices may lead to economies of scale and Lowers the cost of sales.

Social Effects of Advertising is that it is manipulative and promotes unnecessary consumption,Advertising makes us more intelligent consumers and promotes worthwhile social causes.

6 0
2 years ago
A group of researchers wanted to determine if people will eat more food in a room with red paint and red decorations than in a r
GREYUIT [131]

I guess the correct answer is the color of the decorations in the room

A group of researchers wanted to determine if people will eat more food in a room with red paint and red decorations than in a room that is decorated blue. Half the participants in this study ate in a red room and half ate in a blue room. The researchers then measured how much food was consumed in each of the two rooms. In this study, the independent variable was  the color of the decorations in the room.

3 0
3 years ago
Miguel was asked to improve his company's report format. Many employees and clients found the reports hard
VLD [36.1K]

In order to increase the readability, Miguel can use:

  • Shorter lines.
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  • Boxes.

<h3>Improving readability </h3>

Miguel can use shorter lines so that the chances of people getting lost when reading a sentence is reduced. He can also present the information in different columns for more organization.

Another way to organize the information can be in boxes. These can explain concepts away from the text so that the report is less cluttered.

In conclusion, there are several ways to increase readability.

Find out more on readability at brainly.com/question/3923453.

7 0
2 years ago
What best explains why any determination of cost must go beyond counting the money involved ?​
Hitman42 [59]
A process Of maximizing benefits Or minimizing costs.
3 0
3 years ago
Read 2 more answers
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