Assume that cash is paid for rent to cover the next year.

a new machine with a purchase price of $109,000, with transportation costs of $12,000, installation costs of $5,000, and special

egoroff_w [7]

Based on the information given the cost basis is $132,000.

Using this formula

Cost basis=Purchases price+ Transportation costs + Installation costs + Special acquisition fees

Where:

Purchases price=$109,000

Transportation costs=$12,000

Installation costs=$5,000

Special acquisition fees=$6,000

Let plug in the formula

Cost basis=$109,000+$12,000+$5,000+$6,000

Cost basis=$132,000

Inconclusion the cost basis is $132,000.

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6 0

3 years ago

Luxura Inc. is a large cosmetics company that made an initial small investment in a start-up company, GreenDream, that was devel

ludmilkaskok [199]

Luxura Inc. is a large cosmetics company that made an initial small investment in a start-up company, GreenDream, that was developing an organic face lotion. This gave Luxura controlling interests in the start-up company. However, GreenDream soon began to have financial difficulties because of principal-agent problems. As a result, Luxura did not invest in the next stage of development and pulled out of the company. This approach to strategic alliance is referred to as a:A. break-even analysis.B. partial joint venture.C. credible commitment.D. real-options perspective.

D

8 0

4 years ago

The _____ principle states that accounting information is based on actual cost.

Ierofanga [76]

The cost principle principle states that accounting information is based on actual cost.

<h3>What is cost principle?</h3>

The cost principle cannbe regarded aa an accounting principle that stressed that an asset should be recorded at the purchase price.

Therefore, cost principle, stressed that accounting information is based on actual cost.

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7 0

2 years ago

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Bay City Company’s fixed budget performance report for July follows. The $367,000 budgeted total expenses include $280,000 varia

Wittaler [7]

Answer:

Check the explanation

Explanation:

BAY CITY COMPANY

Flexible Budget Performance Report

For the month ended July 31

Flexible Budget Actual Results Variances Fav./Unf.

Sales $3,12,000 $3,51,000 $39,000 Fav

Variable expenses $2,18,400 $2,52,000 $33,600 Unf

Contribution margin $93,600 $99,000 $5,400 Fav

Fixed expenses $87,000 $77,000 $10,000 Fav

Income from

operations $6,600 $22,000 $15,400 Fav

Sales price per unit =$400,000 / 5,000 units =$80 per unit

Flexible Budgeted sales =3,900 units*$80 =$312,000

Variable expenses per unit =$280,000 / 5,000 units =$56 per unit

Flexible Budgeted Variable expenses =3,900 units*$56 =$218,400

7 0

3 years ago

Devon and Edmond enter into a contract for the closing of a sale of Devon's recording studio. When Edmond's schedule conflicts,

aleksandrvk [35]

Answer:

Option A; DELEGATION.

Explanation:

Delegation is an administrative process of getting things done by others by giving them responsibility.

Example is a manager asking a subordinate to take over his duties at a meeting. However, the person who delegated the work remains accountable for the outcome of the delegated work.

Delegation simply means empowering a subordinate to get a work done (i.e. a transfer of authority from a superior to a subordinate).

Since Edmond asks Ferdie to perform his duties at closing because of his own conflicting schedule, therefore, this transfer of duties is called DELEGATION.

3 0

3 years ago

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