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postnew [5]
2 years ago
10

Listed below are certain costs (or discounts) incurred in the purchase or construction of new plant assets. Indicate whether the

costs should be expensed or capitalized (included in the cost of the plant assets on the balance sheet.) For costs that should be included in plant assets. Indicate in which category of plant assets (Equipment. Building. or Land) the related costs should be recorded on the balance Sheet.
a. Invoice cost to purchase Equipment
b. Sales tax on new equipment purchased
c. Cost to lay foundation for a new building
d. Repair costs to fix new equipment damaged by the crew that unpacked it
e. Charges incurred to train employees to use new equipment
f. Construction costs for a new building to be used in operations
g. Attorney fees incurred to complete the purchase documents for a new plant warehouse
h. Freight costs to ship the equipment From the manufacturer to the warehouse
Business
1 answer:
Ann [662]2 years ago
6 0

Answer:

a. Capitalized : Equipment

b. Expensed

c. Capitalized : Building

d. Expensed

e. Capitalized : Equipment

f.  Capitalized : Building

g. Capitalized : Building

h. Capitalized : Equipment

Explanation:

The Cost of Property, Plant and Equipment item according to IAS 16 includes, the Purchase Cost and any cost directly incurred in putting the assets in location and condition intended for use by management.

The costs exclude amounts collected in tax on behalf of third parties

Also not Capital expenditures increase the earning ability of the asset whilst  revenue expenditure is the maintenance of such asset.

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Answer:

The answer is: It will increase.

Explanation:

According to the law of supply and demand, when the price of an specific good or service decreases, the quantity demanded for that good or service will increase.

For example, if the price for a movie ticket is $10, 100 people will go to the movies. If the movie theater starts a promotion and lowers the price for movie tickets to $6, many more customers will be willing to go the movies. Either because they believe watching a movie in the theater is worth 6$ or more, or because they will now be able to afford going to the theater.  

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3 years ago
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Economic cost can best be defined as: (a) any contractual obligation that results in a flow of money expenditures from an enterp
Andreas93 [3]

Answer:

(d) all costs exclusive of payments to fixed factors of production.

Explanation:

The cost involved in the first three options is considered by economists as accounting cost. Economic cost involves the accounting cost, but it is added to the opportunity cost, which is the remuneration that an economic agent fails to receive for practicing one economic activity and not another.

For example, a business owner has fixed production costs, but it should add to his opportunity cost to be working in that firm rather than another economic activity.

8 0
3 years ago
On February 1, 2018, Cue Company acquired 1,000 shares of its $1 par value stock for $47 per share and held these shares in trea
Drupady [299]

Answer:

The journal entries to record both transactions should be:

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    Cr Additional paid in capital 3,000

Treasury stocks account is a contra equity account with a debit balance that reduces the value of total stockholders' equity.

7 0
3 years ago
Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
Elenna [48]
Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
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It has low liquidity because selling would often require selling at a loss.

High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.</span>
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3 years ago
What do you mean by the saving-borrowing-investing cycle?
lyudmila [28]
The saving-borrowing-investing cycle starts with the person borrowing funds to start a business. This is their seed capital to purchase and invest in the future. Then if the business grows, they'll be able to bring back the borrowed funds. The cycle continues. I hope this answer helped you. 
6 0
2 years ago
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