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AVprozaik [17]
3 years ago
7

During the previous year, Yvo Corp. installed a production assembly line to manufacture furniture. In the current year, Yvo purc

hased a new machine and rearranged the assembly line to install this machine. The rearrangement did not increase the estimated useful life of the assembly line, but it did result in significantly more efficient production. The following expenditures were incurred in connection with this project:Machine $75,000Labor to install machine 14,000Parts added in rearranging the assembly line toprovide future benefits 40,000Labor and overhead to rearrange the assembly line 18,000What amount of the above expenditures should be capitalized in the current year?A. $147,000B. $107,000C. $89,000D. $75,000
Business
1 answer:
Neporo4naja [7]3 years ago
4 0

Answer:

A. $147,000

Explanation:

All cost incurrend in the installation of the assembly line, and their put to use to meet the company demand will be capitalized

the machine cost

the labor to install the machine

the parts added to the assembly line

rearrange of the assembly line

All those cost were incurred to leave the assembly line ready to use, are associate with the long-term asset so it can be capitalized through it.

75,000 + 14,000 + 40,000 + 18,000 = 147,000

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Answer:

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4 0
3 years ago
Which of the following statements regarding defined contribution plans is false? A. Employers bear investment risk relating to t
Vlad1618 [11]

Answer:

The correct answer is A. Employers bear investment risk relating to the plan.

Explanation:

The first statement is false, because the main actors in that case would not be employers, but employees. The contribution plan is defined as a pension plan in which the company agrees to make monetary contributions each year for the benefit of the employee. For example, the company can contribute 1% of the salary to a pension fund every month. The employee can also contribute part of his salary to this plan.

4 0
3 years ago
Rx Corp. stock was $60.00 per share at the end of last year. Since then, it paid a $1.00 per share dividend last year. The stock
Aleksandr-060686 [28]

Answer:

Percentage Return  = 5.83%

Explanation:

Given data:

per share cost =$60.00

dividend $1.00 per share

stock price $62.50

total number of share  = 400

WE know that return is given as

Return = (Ending Value - ( Beginning Value + Income)

where,

Ending value = stock price* number of shares

Beginning value  = per share cost * number of shares

income =  dividend* number of shares,

so we have return value

           = ($62.50 x 400) - ($60.00 x 400 + $1.00 x 400) = $1400

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Percentage Return  = .0583

Percentage Return  = 5.83%

3 0
3 years ago
When selecting the best alternative in a cost-benefit analysis, what are the issues to be considered?
disa [49]

Answer: Analyse cost, risk with impacts and project benefits.

Explanation:

The best alternative in a cost-benefit analysis situation are the following;

•The cost types should be analyzed

•Potential risk and their impacts should be looking into

•It is recommended to weigh all the risk even when there is a lot of project benefits.

3 0
3 years ago
Ballard Company uses the perpetual inventory system. The company purchased $10,000 of merchandise from Andes Company under the t
Sunny_sXe [5.5K]

Answer: $8750

Explanation:

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Purchase = $10000

Less: Purchase discount = $10000 × 2% = $200

Add: Freight paid = $450

Total purchase = $10250

Gross margin = Sales - Total Purchases

= $19000 - $10250

= $8750

7 0
2 years ago
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