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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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At work, no one can find the digital version of a 20-page document that needs to be revised. you save the day by using a scanner
VladimirAG [237]
The answer to this question is scanning software.
In order to transform a paper document into a digital form, you need both scanning hardware and scanning software.
Scanning software will transform the document into bits and usually will give some features such as enlarging the image, change some part of the text, etc.
6 0
3 years ago
Read 2 more answers
Bovine Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by its most recent monthly
german

Solution :

Particulars                   \text{Total company}          \text{South  }           \text{Central}          \text{North}

Sales                           $1,500,000              $400,000      $600,000     $500,000

Variable expenses        588,000                208000       180000     200000

Contribution margin      912000                  192000        420000    300000

Traceable fixed          770,000                    240,000      330,000    200,000

expenses          

Geographic market      142,000          -$48000              $90000       $100000

segment expenses

Common fixed

expenses not traceable

to geographic markets

Net operating income

3 0
3 years ago
Evan Company reports net income of $140,000 each year and declares an annual cash dividend of $50,000. The company holds net ass
Taya2010 [7]

Answer:

$708,000

Explanation:

The computation of Investment in Evan Company balance is shown below:-

Purchase of Evan stock = $600,000

Book Value of Evan Stock = Net assets - Given percentage

= $1,200,000 x 40%

= $480,000

Goodwill = Purchase of Evan stock - Book Value of Evan Stock

= $600,000 - $480,000

= $120,000

Life of Goodwill is Indefinite

Annual Amortization is Zero

Cost = $600,000

Income Accrued 2017 = Net income × Given percentage

= $140,000 x 40%

= $56,000

Dividend 2017 = Cash dividend × Given percentage

= $50,000 x 40%

= $20,000

Income Accrued 2018

= $140,000 x 40%

= $56,000

Dividend 2018

$50,000 x 40%

= $20,000

Income Accrued 2019

= $140,000 x 40%

= $56,000

Dividend 2019

$50,000 x 40%

= $20,000

Equals Investment in Evan, 31/12/2019 = Purchase of Evan stock + Income Accrued 2017 - Dividend 2017 + Income Accrued 2018 - Dividend 2018 + Income Accrued 2019 - Dividend 2019

= $600,000  + $56,000 - 20,000 + 56,000 - 20,000 + 56,000 - 20,000

= $708,000

7 0
2 years ago
Alphabet Company, which uses the periodic inventory method, purchases different letters for resale. Alphabet had no beginning in
Mekhanik [1.2K]

Answer:

$94

Explanation:

The computation of the cost of the ending inventory using the FIFO method is shown below:

But before that first we have to determine the ending inventory units which is

= 7 units from A to G + 5 units from H to L + 6 units from M to R

= 18 units

And, 6 units are sold

So, the ending inventory units is 12 units

Now the ending inventory is

From last to beginning

= 6 units × $8.50 + 5 units × $7.50 + 1 units × $5.50

= $51 + $37.5 + 5.50

= $94

This is the answer but the same is not provided in the given options

4 0
3 years ago
A perfectly competitive firm will minimize its losses by shutting down when:
Archy [21]

Answer:

A perfectly competitive firm will minimize its losses by shutting down when: P < TFC at the profit-maximizing level of output. P < MC at the profit-maximizing level of output.

Explanation:

A firm will choose to implement a production shutdown when the revenue received from the sale of the goods or services produced cannot cover the variable costs of production. In this situation, a firm will lose more money when it produces goods than if it does not produce goods at all. Producing a lower output would only add to the financial losses, so a complete shutdown is required. If a firm decreased production it would still acquire variable costs not covered by revenue as well as fixed costs (costs inevitably incurred). By stopping production the firm only loses the fixed costs.

3 0
3 years ago
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