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
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.

You might be interested in
Marginal revenue:
natima [27]

Answer:

A. is the change in total revenues resulting from a change in output.

Explanation:

  • The marginal revenue is the additional revenue that can be generated by the addition of the sales of one more unit and by selling those additional units of the gods that will lead to change in the output and increase in the demand values of the product and services. And is equal to the price the company charges form the buyers.
5 0
2 years ago
All of the following statements are true regarding earnings per common share (EPS) except:
SVEN [57.7K]

Answer:

d) EPS cannot be calculated if a company has no preferred stock.

Explanation:

The above statement is untrue about E.P.S because the reason why 'Preferred dividend' (which is dividend on preference shares)  is subtracted from Net Income, before being divided by the 'Average Number of Common Shares Outstanding' is for comparability.

Since the denominator is based on 'common shares' or 'ordinary shares', it makes sense not to include the part of income that has fallen to preferred shares.

As a matter of fact there are a lot of companies that do not have preferred stock and still report Earnings Per Share on their financial statements.

Finally, still on comparability; E.P.S helps to compare the performance of big companies that have preferred stock with small companies that do not have. Hence EPS can be calculated even when there is no preferred stock.

8 0
2 years ago
You decide to save a uniform amount at the end of each month for 12 months so you will have $1000 at the end of 1 yr. The bank w
vitfil [10]

Answer:

$81.13

Explanation:

first we must calculate the effective monthly interest rate:

1.06 = (1 + i)¹²

1.004868 = 1 + i

i = 0.4868%

the future value of this annuity is given, but we need the monthly contribution:

monthly contribution = future value / FV annuity factor

future value = $1,000

FV annuity factor, 0.4868%, 12 periods = 12.32656

monthly contribution = $1,000 / 12.32656 = $81.13

5 0
3 years ago
Given below are lease terms at the local dealership. What is the total cash
adell [148]

Answer:

1) 2,475

down payment+security deposit+acquisition fee= total cost

sorry if I miss something

4 0
2 years ago
Campbell Co. has net sales revenue of $1,000,000, cost of goods sold of $680,000, and all other expenses of $232,000. The beginn
ehidna [41]

Answer:

3.33

Explanation:

The fixed asset turnover is the ratio between total sales over fixed assets. It measures how the company uses its fixed assets to generate sales. A low ratio means that the company has probably over-invested in fixed assets.

Fixed asset turnover ratio = total sales / average fixed assets

Fixed asset turnover ratio = $1,000,000 / [($288,800 + $311,200) / 2] = $1,000,000 / ($600,000 / 2) = $1,000,000 / $300,000 = 3.33

4 0
2 years ago
Other questions:
  • If a pension plan has not established an irrevocable trust to account for defined benefit pension plan contributions and distrib
    11·2 answers
  • The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder
    10·1 answer
  • _____ is a classic management tool that incorporates the idea of scanning elements such as strengths, weaknesses, opportunities,
    11·1 answer
  • What should you plan for first when creating a budget
    14·1 answer
  • Most job leads are discovered through
    15·1 answer
  • Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assi
    11·1 answer
  • A student has inherited $50,000. If it is placed in asavings account that earns 3% interest, how much isin the account in 30 yea
    14·1 answer
  • On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $48,000 and
    13·1 answer
  • Which of the following statements about oligopoly is FALSE: A. Oligopolies have a tendency to collude and form cartels in order
    14·1 answer
  • Anticipatory and response-based business models are the two ways used by firms to fulfill customer requirements. However, keepin
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!