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katrin2010 [14]
3 years ago
15

Taylor Company purchased a piece of equipment for $2,000 several years ago. It would cost $4,000 to replace that piece of equipm

ent. A. The equipment should be recorded at $4,000 in the accounting records because that is the replacement cost. B. The company can choose whether to report the equipment at $2,000 or $4,000. C. The equipment should be recorded at $2,000 in the accounting records because that was the exchange price. D. None of the above are correct.
Business
1 answer:
Black_prince [1.1K]3 years ago
6 0

Answer:

C. The equipment should be recorded at $2,000 in the accounting records because that was the exchange price.

Explanation:

The equipment should simply be recorded at $2,000. For example, if it was paid in cash, the journal entry would be:

Account                      Debit           Credit

Equipment                $2,000

Cash                                                $2,000

The fact that it would cost $4,000 to replace it does not mean that it will be replaced. It is only a hypothetical scenario that should not be recorded in the accounting journal, because it does not reflect economic reality.

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Whether exchange is between individuals, firms, or countries, voluntary trade occurs because:
larisa86 [58]

Answer:

b.both parties are made better off.

Explanation:

People voluntary to trade when they will better off after the trade. Since individual or nation has different proficiency and endowment resources, the ability to produce some product will be different for each country.

For example, German people are skillful of making beer. They have efficient production. Whereas France have expertise in making perfume. It is reasonable for German people to buy perfume from France since it is cheaper and has better quality than making it themselves. On the other hand, if french want to drink beer, it is cheaper to buy from Germany. Thus, both Germany and France will be better of after the trade.

5 0
3 years ago
How important do you think focus groups are to the eventual success of a new product?
olga2289 [7]

Answer:

Yes

Explanation:

Focus groups help businesses learn what their customers think, enabling strategic decision-making focused on their target market's true wants and needs

5 0
3 years ago
Kira loves Mexican food. She saw a new Mexican restaurant that had affordable prices. She went in to eat but had a bad experienc
Sergeu [11.5K]

Answer:

level of quality

Explanation:

For Kira the restaurant has a low level of quality

5 0
3 years ago
Ramona Company has the following labor-related data.Standard labor hours for output: 15,000 hoursStandard labor rate: $10 per ho
Alik [6]

Answer:

E. $25,000 unfavorable

Explanation:

The labor efficiency variance shall be calculated using the following formulas:

Labor efficiency variance=((Standard labor hours used to make the actual production )- (Actual labor hours used to make the actual production))* standard rate per hour

Standard labor hours used to make the actual production=15,000

Actual labor hours used to make the actual production=17,500

standard rate per hour=$10 per hour

Labour efficiency variance=(15,000-17,500)*10

                                           =25,000 unfavourable

So based on the above discussion, the answer shall be E. $25,000 unfavorable

8 0
3 years ago
Olivia is the owner of an interior designing firm. She has a tight-knit group of designers working for her. The designers have d
nignag [31]

Answer:

C. deep-level diversity

Explanation:

Deep-level diversity is a type of diversity among individuals that is not easily observable, and includes traits such as working styles, values, beliefs, cognitive, or decision-making styles. These are usually psychological. These traits are less observable.

According to the information given in the question above about the Olivia and her employees, we can infer that Olivia and her employee display deep-level diversity, as the designers have traits that are not easily observable such as the different working styles they have while they still work effectively together as a team.

8 0
2 years ago
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