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Natalka [10]
3 years ago
7

Practice Question 03 Corristan Company purchased equipment and incurred these costs: Cash price $24,000 Sales taxes 1,200 Insura

nce during transit 200 Annual maintenance costs ____400 Total costs $25,800 What amount should be recorded as the cost of the equipment
Business
1 answer:
Vsevolod [243]3 years ago
6 0

Answer:

The cost recorded for the equipment=$25,800

Explanation:

In calculating the total cost of an equipment we take the sum of the purchase cost and other additional associated costs that come with the equipment. This can be expressed as;

T=P+A

where;

T=total cost

P=purchase cost/cash price

A=additional costs(sales tax+insurance+maintenance cost)

In our case;

T=unknown

P=$24,000

A=(1,200+200+400)=$1,800

replacing;

T=24,000+1,800=25,800

The total cost=$25,800

The cost recorded for the equipment=$25,800

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4 years ago
What is the difference between marginal revenue and total revenue ?
Daniel [21]

Answer:

Explanation:

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6 0
3 years ago
Consider a firm with a 9.5% growth rate of dividends expected in the future. The current year’s dividend was $1.32. What is the
Over [174]

Answer:

Using the DDM method we can find the fair value of the stock. For that we need the current years dividend, the company's growth rate and the required rate of return on the stock.

The formula for DDM is

Value = D*(1+G)/R-G

D= 1.32

G= 9.5%

R=13%

1.32*(1+0.095)/(0.13-0.095)= 41.29

The fair present value of the company based on the dividend discount model is $41.29.

Explanation:

6 0
4 years ago
You purchase a bond with a coupon rate of 8.6 percent, a par value of $1,000, semiannual coupons, and a clean price of $860. If
arlik [135]

Answer:

The answer is $881.5

Explanation:

Solution

Given that:

The accrued interest is  refers to the payment (coupon) for the time with the fraction of the time that has exceed since the last coupon payment.

Since we have a semiannual coupon bond, the coupon payment for six months is 1/2 of the annual coupon payment.

Three months has exceeded since the last coupon payment.

So the accrued interest for the bond is given below:

Accrued Interest = $86/2 * 3/6

= $21.5

Thus

The price (dirty) = Clean Price + Accrued Interest

= $860 + $21.5

= $881.5

Therefore the invoice price is $881.5

4 0
4 years ago
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