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artcher [175]
3 years ago
12

Dougherty Corporation purchased a new delivery van for use in its dry-cleaning business. As part of the purchase of the van the

following costs were incurred:
Acquisition cost 30,000, Sales tax 1,800, Title transfer 250, paid to the company logo on the van 1,200, and two-year service contract 1,600.
Which of these costs would not be included in the capitalized cost of the asset?
Business
1 answer:
vfiekz [6]3 years ago
6 0

Answer:

Company logo cost and the two year service contract

Explanation:

The capitalized cost of the asset includes those costs that is shown on the asset side of the balance sheet.  

In the given scenario, the capitalized cost includes acquisition cost, sales cost, and the title transfer fee

But the cost that is not capitalized and is not reflected on the balance sheet is a company logo on the van and the two-year service contract

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4 years ago
What is a major factor in the decline of some occupations, such as those in the textiles and clothing industries?
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matt, a shareholder, can run for director by simply placing his name on the company's proxy statement. True or False?​
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6 0
3 years ago
Wooten &amp; McMahon Enterprises produces a product with the following per-unit costs: Direct materials $13.00 Direct labor 8.80
vichka [17]

Answer:

COGS= $31,597.5

Explanation:

Giving the following information:

Direct materials $13.00

Direct labor 8.80

Manufacturing overhead 16.50

Last year, Wooten & McMahon Enterprises produced and sold 825 units

First, we need to calculate the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 0 + 13 + 8.8 + 16.5 - 0= $38.3

Total cost of goods manufactured= 825*38.3= $31,597.5

Now, we can calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

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8 0
3 years ago
Phoenix Agency leases office space for $7,000 per month. On January 3, Phoenix incurs $65,000 to improve the leased office space
Daniel [21]

Answer:

correct option is $13,000

Explanation:

given data

leases office = $7,000 per month

Phoenix incurs = $65,000

yield benefits = 8 years

remaining on its lease = 5 years

solution

we know that The cost of leasehold improvement is depreciate whichever is less    

(a)  Remaining Lease Term      

(b) estimated useful life of improvement

so Annual depreciation of Leasehold Improvement will be here

Annual depreciation of Leasehold Improvement = \frac{65000}{5}

Annual depreciation of Leasehold Improvement = $13,000

so correct option is $13,000

4 0
3 years ago
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