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3 years ago

Acme Enterprises just bought a new manufacturing machine. Which of these costs should be capitalized? (Check all that apply.)

Business

1 answer:

ankoles [38]3 years ago

4 0

Answer:

Option D, E and F. See below for information.

Explanation:

Costs are capitalized when they form a principal part of the asset. These costs may include any costs that are needed to make the asset operational and any costs that are incurred to bring the asset to operating premises.

As such the $15,000 freight bill that brings the asset in premises, the invoice price of $500,000 which comprises the cost of the capital asset and the one time cost of $8,000 to tear down the wall and install the asset are all capital costs and are to be capitalized in the final cost of the asset to be recorded.

All other are annual expenses are not to be capitalized (Option a, b and c)

Hope that helps.

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"Shareholder wealth" in a firm is represented by:

Grace [21]

The best and most correct answer among the choices provided by the question is the fourth choice. "Shareholder wealth" in a firm is represented by the market price per share of the firm's common stock. I hope my answer has come to your help. God bless and have a nice day ahead!

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3 years ago

Would pebbles at the beach make a good form of money explain why or why not.

Artemon [7]

Answer:

No, they would not.

Explanation:

Pebbles are too easy to come by. They would not be very valuable as everyone could easily get very many.

4 0

4 years ago

Read 2 more answers

Dollar bills in the modern economy serve as money because

nikitadnepr [17]

Answer:

The reason for this is that the people will accept it as money confidently.

Explanation:

Since the definition of money explains that money can be anything that is accepted by the people and serve as the medium of exchange. However, in the case of a dollar bill, people have accepted it as a medium of exchange.

8 0

3 years ago

GHI Co. is planning to pay a dividend of $3.20 in the next year and expects to grow the dividend at a constant rate of 4% per ye

maria [59]

Answer:

The price of this stock = $41.6

Explanation:

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

So if an asset (e.g a stock) promises some cash flows in the future, those cash flows need to be brought to their present values and then be added to arrive at the value of the asset.

This model is based on the concept of the time of money. The idea that $1 today is not the same as $1 tommorow. The $1 of today is worth more than that of tomorrow; and because of the opportunity to earn interest. So to determine the worth of a future cash flow, we compute its worth today- its present value.

The Present Value of a future cash flow is the amount that needs to be invested today at a particular rate of return to equal the same cash flow in the future. Present value means the value in year 0 or now

The process of calculating the present value of a future sum is called discounting. So to calculate the stock price in this question, we shall discount the future dividends using the required rate of return and then add them together.

Applying this model, the price of the stock

P =D (1+g)/(r-g)

D in year 0 (i.e now), r = required rate of return, g- growth rate

D- 3.20, r- 0.12, g -0.04

P = (3.20 × (1+0.04))/(0.12-0.04)

P = $41.6

The price of the stock = $41.6

3 0

3 years ago

X sells a house to Y for $300,000. Before selling the house, X forgets to tell Y about a leakyfaucet in a little-used sink in th

VashaNatasha [74]

Answer:

c. Because X's failure to disclose the condition of the faucet is not material.

Explanation:

In order to consider X's failure as material and therefore allowing Y to rescind the contract, the failure to disclose must involve an element of the contract that is in such a bad condition that it would make the contract as "irreparably broken".

In this case, contract law provides other remedies that Y can use to try to make X pay for the repairs, but Y cannot unilaterally rescind the contract.

7 0

4 years ago