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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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Imagine that in the current year the economy is in long-run equilibrium. Then the federal government reduces its purchases of go
stealth61 [152]

Answer:

The expected price level falls., new wage contracts will be negotiated at a lower wage in the market.

Explanation:

In the case when the economy is in the long run equilibrium and the federal government decreased the goods purchase by 50%. So in the long run the expected price level would be decline and the effect on wage bargaining would be that the new wage control would be negotiated at a less wages in the market place

Therefore, the correct option is c

And, the same would be relevant

8 0
3 years ago
Concord Corporation purchased a depreciable asset for $175700. The estimated salvage value is $14200, and the estimated useful l
kherson [118]

Answer:

the depreciation base of this asset is $161,500

Explanation:

Depreciation Base is the Value that is divided y the useful life to obtain the depreciation charge of an asset.

Depreciation Charge under straight line method is calculated as :

Depreciation = (Cost - Salvage Value)/Number of Useful Life

Therefore depreciation base of this asset is $175700 - $14200 = $161,500

6 0
3 years ago
the acme corporation believes that the production of its product in its present facilities will assume logistic growth. these fa
oksian1 [2.3K]

Answer:

594 units

Explanation:

We must apply the logistics growth model, since applying linear or exponential growth will result in numbers which are much higher than the total production capacity of this facility. When we use the logistics growth model, the growth rate decreases as the resource limit approaches.

f(x) = c / (1 + ae⁻ᵇˣ)

initial value = c / (1 + a) = 240

600 = 240 + 240a

360 = 240a

a = 1.5

b = growth rate = (360 - 240) / 240 = 0.5

x = 5

e = 2.71828

f(x) = 600 / [1 + [1.5 x (2.71828⁻⁵) = 600 / 1.010106954 = 593.9965 = 594 units

7 0
3 years ago
As soon as you leave the interview, you think of a scenario you should have mentioned to illustrate your ability to handle multi
Digiron [165]

Answer:

Explanation:

As my own personal opinion based on my experiences, I believe that the best way to implement this into a thank-you letter would be to simply explain how a previous experience that you have had increased your multitasking abilities through months or even years of practice. If you do this while also connecting or relating the story/scenario with the interview position or process it will better resonate with the hiring manager/company and greatly increase your chances of landing that job.

7 0
3 years ago
A bank has an interest rate spread of 150 basis points on $30 million in earning assets funded by interest-bearing liabilities.
SpyIntel [72]

Answer:

$300,000

Explanation:

Data provided in the question;

Interest rate spread of the bank = 150 basis points

Earning assets funded by interest-bearing liabilities = $30 million

Now,

The new interest rate spread = 150 basis points - 50 basis points

or

The new interest rate spread = 100 bps

or

The new interest rate spread = 1%

Therefore,

the bank's new pretax net interest income will be

= $30 million × 1%

= $30,000,000 × 0.01

= $300,000

8 0
3 years ago
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