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
alekssr [168]
3 years ago
13

Anchor Company purchased a manufacturing machine with a list price of $85,000 and received a 2% cash discount on the purchase. T

he machine was delivered under terms FOB shipping point, and freight costs amounted to $2,200. Anchor paid $3,000 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $3,800 for the first year of operations. Based on this information, the amount of cost recorded in the asset account would be:
Business
1 answer:
Naily [24]3 years ago
3 0

Answer:

The initial cost of manufacturing machine to be capitalized as per International Accounting Standard 16 is $88,500.

Explanation:

IAS-16 states that the initial cost should include the Purchase Price Plus all the costs necessary to bring the asset into working condition. The discount should be deducted. Freight Charges and Installation Costs are directly attributable costs, these costs must be incurred to bring it to working condition. On the other hand, insurance is not required to make machine run so this cost should be written-off to Profit or Loss Statements as soon as incurred.

Purchase Price = 85,000 * .98 = $83,300

Add:               Freight Charges =     2,200

                      Installation Cost =     3,000

          Cost To Be Capitalized = $88,500

Thanks!                        

You might be interested in
Jake manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash. On payday, he immediately g
poizon [28]

Answer:

The given condition is an example of:

A. Menu costs

Explanation:

In the given question mentioning data is that

Jake is been managing a grocery store in any country which is experiencing high rate of inflation. He is mentioned to be paid in cash.

On his very payday he went outside immediately and bought as many goods as he could for himself as he was going to get his pay today and was needing those items.

So, he thought of buying all the items he is needing as for the next two weeks  in order of prevention of the money in his wallet from losing value due to high inflation rates.

And at last what he couldn't spend on buying for all that amount he converted that amount into most stable foreign currency for being used as a steep fee.

So all this were an example of :

A. Menu costs

7 0
3 years ago
Jacob wanted a parking space in a nearby lot. He filled out an application and a computer generated his choices. This is an exam
Andrej [43]

Answer: lottery

Explanation:

3 0
2 years ago
Section 1 Question 1 of 22. A tax preparer's high ethical standards protect taxpayers by: o Providing them with an accurate retu
gavmur [86]

A tax preparer's high ethical standards protect taxpayers by option A: Providing them with an accurate return, including all tax benefits to which they are entitled.

A tax preparer's high ethical standards protect the tax preparer through except option D: Eliminating the need for preparer due diligence notes Mark for follow up

The statement that  is accurate is option C: Beatrice may claim EITC based on Jordyn if her AGI was higher than Beth's and if she files first.

<h3>What are tax ethics?</h3>

Tax ethics, is known to be the term for the taxpayer's moral duty to pay taxes, is influenced by their interaction with the government as citizens. Tax evasion and tax ethics are frequently used synonymously.

When filing taxes, a tax preparer should take certain ethical considerations into account:

  • Inform the appropriate third parties about the suspected fraudulent behavior.
  • Inform the IRS and other tax authorities of the alleged fraudulent activities.
  • Think about ending the engagement.

Therefore, one can say that anyone who prepares a tax return may now be held accountable for errors committed in filing a return for someone else due to a change in tax regulations that took effect more than ten years ago. An IRS monetary penalty may be imposed on a tax preparer who made errors on your return.

Learn more about ethical standards from

brainly.com/question/24519475
#SPJ1

4 0
1 year ago
By using bootstrap marketing strategies (unconventional, low-cost, creative techniques) small companies can get as much "bang" f
Marat540 [252]

Answer:

The given statement relates to bootstrap marketing strategies

Explanation:

In simple words, Bootstrap marketing relates to an advertising strategy usually used by entrepreneurs to create a business from the bottom up with little but private money and, luckily, money from the very first sale.

 This method is usually used by start ups for capturing initial market share and with the expertise of an angel investor they can really go for high goals.

8 0
3 years ago
After the elimination period, a totally disabled insured qualified and started receiving benefits from his disability income pol
Andrej [43]
A premium will be waived
7 0
3 years ago
Other questions:
  • Lenore, Inc. gathered the following information from its accounting records and the October bank statement to prepare the Octobe
    5·1 answer
  • Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $200,000 in eighteen ye
    11·1 answer
  • What happens to the equilibrium price when supply go down
    15·1 answer
  • Alfonso has noticed that increases in unemployment insurance claims are associated with recessions, and therefore be advocates l
    12·1 answer
  • During May, 2018, Sugar Inc. performs consulting services. The client does not pay Sugar until June, 2018. Multiple Choice Using
    9·1 answer
  • Cash $207,200 Salaries and wages expense (sales) $318,080 Inventory 599,200 Salaries and wages expense (office) 387,520 Sales re
    15·1 answer
  • Drewson Health Foods has 16 comma 000 shares of $ 1 par common stock​ outstanding, which were issued at $ 15 per share. Drewson
    7·1 answer
  • Written evidence of the ownership of a piece of property
    11·1 answer
  • The most important part about having an effective organizational culture is to:
    5·1 answer
  • joe dimaggio, the legendary baseball player, was a longtime ad spokesperson for which brand? alka-seltzer
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!