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Kazeer [188]
3 years ago
7

Consider the expenditures listed below and classify each of the expenditures as a capital expenditure or a revenue expenditure r

elated to machinery.
a.

Purchase price.

b.

Ordinary recurring repairs to keep the machinery in good working order.

c.

Lubrication before machinery is placed in service.

d.

Periodic lubrication after machinery is placed in service.

e.

Major overhaul to extend useful life by three years.

f.

Sales tax paid on the purchase price.

g.

Transportation and insurance while machinery is in transit from seller to buyer.

h.

Installation.

i.

Training of personnel for initial operation of the machinery.
Business
1 answer:
Bingel [31]3 years ago
4 0

Answer:

a.  Purchase price.  This is capital expenditure.

b.  Ordinary recurring repairs to keep the machinery in good working order.   This is revenue expenditure

c.  Lubrication before machinery is placed in service.  This is revenue expenditure.

d.  Periodic lubrication after machinery is placed in service.  This is revenue expenditure.

e.  Major overhaul to extend useful life by three years.  This is capital expenditure.

f.  Sales tax paid on the purchase price.  This is capital expenditure. However, if sales tax is refundable than this will neither be classified as capital expense nor revenue expense.

g.  Transportation and insurance while machinery is in transit from seller to buyer.  This is capital expenditure.

h.  Installation.  This is capital expenditure.

i.  Training of personnel for initial operation of the machinery. This is revenue expenditure.

Explanation:

The costs that are charge as expense in profit and loss statement in the period in which thay are incurred are known as revenue expense.

The costs that are capitalized initially and expensed out as benifits, are derived from it, are classified as capital expenditure.

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Rufina [12.5K]

,Answer:

                                               Zoe Corporation

Statement of Cost of Good Manufactured For the Month Ended March 31

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Direct Materials:

Materials inventory, March 1                               6,000  

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Cost of Materials used in Production                               90,000

Direct Labor                                                                        25,000

Factory Overhead                                                             <u>  37,000</u>

                                                                                                            <u>   152,000</u>

Total Manufacturing Cost                                                                      174,000

Less Work in Process Inventory, March 31                                       <u>   (23,500)      </u>

Cost of Goods Manufactured                                                              150,500

7 0
3 years ago
Define the mergers and acquisitions of Tesla and define what has the company gained?
Phoenix [80]
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It confirms that Hibar and Deepscale were relatively small acquisitions for Tesla.

Deepscale appears to be mostly what some people call “acqui-hire,” and the people who join Tesla probably got a bunch of shares.

As for Maxwell, which was a $207 million acquisition, and Hibar, which had to be less than $96 million, I think those two acquisitions combined is a somewhat inexpensive way to supercharge their now obvious move into manufacturing their own battery cells.

Again, we expect to hear more about Tesla’s effort to invest heavily into its own battery cell production in the next few months.

Tesla has acquired 6 companies, including 3 in the last 5 years. A total of 2 acquisitions came from private equity firms.

Tesla’s largest acquisition to date was in 2016, when it acquired SolarCity for $2.6B. Tesla has acquired in 3 different US states, and 2 countries. The Company’s most targeted sectors include machinery (34%) and automotive (17%).

Join Mergr and gain access to Tesla’s M&A summary, the M&A summaries of companies just like it, as well as recent M&A activity in the automotive sector.

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5 0
3 years ago
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AfilCa [17]
Hey, The answer is true. Hope I helped!!
5 0
3 years ago
If a firm's know-how, skills, and capabilities can be protected by contract, and if tight control over foreign operations is not
Aleks04 [339]

Answer:

The correct answer is Licensing.

Explanation:

A business license allows the owner the right to start and develop a particular type of business in the city, county, state or country where it is granted. It is a type of permit that implies that the company has the backing of the government to operate. Government agencies can fine or close a business that operates without a license, so you should find out if having a license is part of your process to start your business, not everyone requires a license.

Depending on the type of business you have, you may need a local, county, state or federal license or none. Where your company is located will determine what type of license you need and where to obtain it.

8 0
3 years ago
Social Security Tax is 6.2%; Medicare Tax is 1.45% and federal and state unemployment compensation taxes total 5.4% (both added
VikaD [51]

Answer:

The total payroll taxes for employee withheld for the current month will be $481.25 .

Explanation:

The social security tax and medicare tax will be calculated on the employee ( George glass ) earnings $2500 for the current month.

SOCIAL SECURITY TAX = $2500 X 6.2%

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MEDICARE TAX              = $2500 X 1.45%

                                        = $36.25

Here federal unemployment compensation taxes won't be calculated on the employee's current , as these taxes will be paid by the employer.

In the total tax we will include federal income tax and state income taxes, so total payroll taxes would be -

= social security tax + medicare tax + federal income tax + state income tax

= $155 + $36.25 + $250 + $40

= $481.25  

4 0
3 years ago
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