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Anit [1.1K]
3 years ago
11

Acquisition Cost of Long-Lived Asset The following data relate to a firm’s purchase of a machine used in the manufacture of its

product: Invoice price $34,000 Applicable sales tax 2,000 Cash discount taken for prompt payment 400 Freight paid 260 Cost of insurance coverage on machine while in transit 125 Installation costs 2,000 Testing and adjusting costs 475 Repair of damages to machine caused by the firm’s employees 750 Prepaid maintenance contract for first year of machine’s use 400 Determine the acquisition cost of the machine. Acquisition Cost
Business
1 answer:
klemol [59]3 years ago
6 0

Answer:

The acquisition cost is $38140

Explanation:

acquisiton cost = invoice price + applicable sales tax - cash discount + freight paid + cost of insurance + installation cost +testing and adjusting costt                

= $34000 + $2000 - $400 + $260 + $125 + $2000 + $425

= $38410

Therefore, The acquisition cost is $38140.

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The quantity demanded of Blu-ray players increased 9% when the price of DVDs increased 5%. What is the estimated cross-price ela
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Answer:

cross price elasticity of demand = 1.8

Explanation:

cross price elasticity of demand = % change in quantity of X / % change in price of Y

cross price elasticity of demand = 9% / 5% = 1.8

When the cross price elasticity of demand is positive, it means that the products are substitutes. If the cross price elasticity is negative, then the products are complements.

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3 years ago
The central bank buys $15,000 worth of bonds in the open market from Christopher, who
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Answer:

(a) What is the amount by which Carla Bank's liabilities have changed?

Carla Bank's liabilities increased by $15,000 (bank deposits are liabilities).  

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Carla Bank's reserves must increase by $15,000 x 5% = $750

(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially make because of Christopher's deposit?

Carla Bank can loan $15,000 x 95% = $14,250

(d) Based on the central bank's open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system.

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The money supply has the potential to increase by $15,000 x 20 = $300,000

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Aggregate demand will increase since the total money supply increases. This should also help to decrease the interest rates and foster investment.

4 0
2 years ago
The difference between a secured loan and an unsecured loan is _____.
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D. a secured loan requires collateral and an unsecured loan does not
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