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2 years ago

Which if the following would be debited to the equipment account

Business

2 answers:

Minchanka [31]2 years ago

7 0

Answer:

The correct Choice is: B. In-transit insurance costs

Explanation:

The cost of machinery and equipment includes: • Purchase price (less any discounts) • Transportation (delivery) charges • Insurance while in transit • Sales and other taxes • Purchase commission • Installation costs • Cost of testing the asset before it is used After the asset is up and running, the company no longer debits insurance, taxes, and maintenance costs to the Equipment account. From that point on, insurance, taxes, repairs, and maintenance costs are recorded as expenses. (Financial Accounting, Kemp).

kozerog [31]2 years ago

4 0

I think the answer is a

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In February 2017 the risk-free rate was 4.97 percent, the market risk premium was 7 percent, and the beta for Twitter stock was

Gnesinka [82]

Answer:

14.77%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.97% + 1.40 × 7%

= 4.97% + 9.8%

= 14.77%

The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is shown in the answer

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3 years ago

Classify each item as an asset, liability, common stock, revenue, or expense. (a) Issuance of ownership shares. select the corre

Roman55 [17]

Answer:

The classified list of items is as follows:

(a) Issuance of ownership shares - Common stock

(b) Land purchased - Asset

(d) Bonds payable - Liability

(e) Amount earned from selling a product - Revenue

(f) Cost of advertising - Expense

Hence, all the items are classified as asset, liability, revenue, common stock and expense.

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2 years ago

Joel and Liza are having a disagreement over one of their stock investments, which just lost 15 percent in a short period of tim

anastassius [24]

B.

It says Liza is risk tolerant, therefore it would make sense that she would hold on to these stocks as risk tolerant people often hold onto stocks in the long term.

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3 years ago

Read 2 more answers

Oriole Company purchased equipment for $41600. Sales tax on the purchase was $2496. Other costs incurred were freight charges of

Aleksandr [31]

Answer:

The cost of the equipment is <u>$45,416</u>.

Explanation:

The cost of a newly purchased equipment is the addition of all relevant costs uncured in order to make the equipment ready for use.

The cost of the equipment includes costs such as purchase price, tax paid on the purchase, installation costs, etc.

However, any cost incurred to repair any damage to an equipment during installation is not part of equipment cost. Such repair costs are just ordinary expenses that are charged to the income statement during the period.

Based on the explanation above, the cost of the equipment by Oriole Company can be calculated as follows:

Equipment cost = Purchase price + Sales tax + Freight charges + Installation costs ..................... (1)

Since,

Purchase price = $41,600

Sales tax on the purchase = $2.496.

Freight charges = $624

Installation costs = $696.

Substituting the values into equation (1), we have:

Equipment cost = $41,600 + $2,496 + $624 + $696 = $45,416

Therefore, the cost of the equipment is <u>$45,416</u>.

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3 years ago

Suppose that the government decides to regulate this natural monopolist by requiring the firm to charge a price of P2. Which is

Natali5045456 [20]

If the government takes this approach, consumer surplus would increase.

A monopoly is when there is only one firm operating in an industry. A natural monopoly occurs when there is a high start-up cost associated with opening a business or a firm enjoys economies of scale.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good. As the price of a good declines, consumer surplus increases. P2 is lower than P1, this means that if price is regulated to P2, consumer surplus would increase.

Please find attached the graph required to answer this question. To learn more, please check: brainly.com/question/15415230

7 0

2 years ago