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
land is different from other tangible assets in that its utility is not diminished by its use. this statement is
deff fn [24]
Answer: true
explanation
5 0
3 years ago
Resources are adequate, but demand varies widely over the life of the project. Delaying noncritical activities to lower peak dem
-BARSIC- [3]

Answer:

resource smoothing

Explanation:

According to the definition provided in the question we can say that this is regarding resource smoothing. Like mentioned in the question this term refers to a management technique that adjusts the resources so that the requirements do not surpass the resource limits that the company has specified, by delaying the noncritical activities in order to allow for the important ones first.

If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
Have a great day!!! and 78 pts!!!
Vikki [24]

Answer:thx buddyExplanation:

5 0
3 years ago
Read 2 more answers
A firm may opt to pay millions of dollars for celebrity endorsements in order to:_____
Oxana [17]

A firm may opt to pay millions of dollars for celebrity endorsements in order to signal to consumers that the advertised product is appealing and likely to be popular.

A consumer is defined as an individual or business that consumes or uses goods or services. A customer is a buyer in the economy who buys goods and services and can exist as a consumer or as a sole customer.

Consumers are sometimes contrasted with producers. For example, a company that manufactures toothpaste is a producer. And if you buy this toothpaste, you are a consumer. However, be aware that people often produce and consume the same item.

It is the producers and consumers who buy and sell. Producers create or produce goods and provide services, and consumers buy those goods and services with money. Most people are both producers and consumers.

Learn more about  consumers here: brainly.com/question/380037

#SPJ4

5 0
2 years ago
Zippy Quadcopters plans to sell a standard quadcopter ​(toy drone) for $ 50 and a deluxe quadcopter for $ 80. Zippy purchases th
mote1985 [20]
Hmmm. i’m figuring this out right now
8 0
4 years ago
Other questions:
  • Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discr
    7·1 answer
  • A material overstatement in ending inventory was discovered after the year-end financial statements of a company were issued to
    14·1 answer
  • Regulations that make it difficult to enter a particular job market are harmful because a. they reduce competition and prevent s
    11·1 answer
  • A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive ad
    10·1 answer
  • Nestlé reports beginning raw materials inventory of 3,815 and ending raw materials inventory of 3,499 (both numbers in millions
    11·1 answer
  • A consumer uses goods and services to
    10·2 answers
  • A risk exposure is defined as the impact to the organization when a situation transpires. The widely accepted formula for calcul
    8·1 answer
  • To recruit new executive and professional, company should mainly depend on_____ *
    14·1 answer
  • Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August, the company's records
    15·1 answer
  • Consider a chemical factory that is situated next to a farm. Airborne emissions from the chemical factory damage crops on the fa
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!