Answer:
$25,400.
Explanation:
International Accounting Standard 16 states that any Property, Plant, and Equipment should be initially recognized at a cost that includes all the costs that are necessary to bring the asset to its working condition. Example of such costs include:
- Purchase Price.
- Delivery Charges.
- Sales Taxes Paid, if any.
- Deduct Discounts, if any.
- Installation Costs.
- Dismantling Cost.
- Any other Directly Attributable Costs.
The standard further states that any periodic cost should be written-off to Profit or Loss as incurred. Such costs include Maintenance Costs. These are the costs that are not necessary to bring the asset to its intended use.
So in this case, the cost that should be capitalized is $25,400 (24,000 + 1,200 + 200).
Note: The insurance costs of $400 has been capitalized because it was incurred for Transit Purposes and before the asset was prepared for use.
Answer:
$2,430
Explanation:
Given that,
Purchase price = $108,000
Maximum LTV = 97.75%
LTV refers to the maximum amount that a lender will considering to loan out which is the percentage of the value of the property.
Therefore, the minimum down payment that a Connie must make for taking a loan is as follows:
= Purchase price × (1 - Maximum LTV)
= $108,000 × (1 - 97.75%)
= $108,000 × 0.0225
= $2,430
Answer:
Journal Entry
Explanation:
The Journal Entry is shown below:-
Materials Dr, $190,000
Accounts Payable 190,000
(Being Material repurchase is recorded)
Therefore for recording the material purchase we debited the materials and credited the accounts payable.
So, as per the question, the correct entry is above. The option is not available.
i believe it is A, you’re welcome!
The process of documenting project procurement decisions specifying the approach and identifying potential sellers