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ASHA 777 [7]
3 years ago
12

Which of the following below is an example of a capital expenditure? Group of answer choices replacing an engine in a company ca

r cleaning the carpet in the front room tune-up for a company truck replacing all burned-out light bulbs in the factory
Business
1 answer:
Citrus2011 [14]3 years ago
5 0

Answer:

The correct answer is letter "A": replacing an engine in a company car.

Explanation:

Capital Expenditures refers to the company's expenditure on physical assets such as buildings or equipment. Capital expenditure is unusual and can not be deducted from income for tax purposes; instead, the value of capital expenditure is added to the assets of the company and the value is reduced annually by depreciation and amortization.

Therefore, <em>replacing an engine in a company car is a necessary, unexpected expense the firm has to incur.</em>

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Red Rock Bakery purchases land, building, and equipment for a single purchase price of $260,000. However, the estimated fair val
telo118 [61]

Answer:

Land ($91,000), building ($143,000) and equipment ($26,000)

Explanation:

We can allocate the fair values as follows:

Particulars          Fair value          Allocated amount

                               (a)                 (b) = (a)/Total*$260,000

Land                    $126,000                 $91,000

Building                 198,000                 143,000

Equipment              36,000                  26,000

Total                   $360,000              $260,000

The amount that the company would record for the individual asset is as provided above.

4 0
3 years ago
RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells
finlep [7]

Answer:

The correct answer is "12,500 units" and "$100 per unit".

Explanation:

Given:

Selling price,

= $10 per unit

Variable cost per unit,

= $6 per unit

Fixed cost,

= 30,000

Desired profit,

= 20,000

Now,

The contribution margin per unit will be:

= Selling \ price - Variable \ cost

= 10-6

= 4 ($) per unit

The required units will be:

= \frac{(Fixed \ cost+Desired \ profit)}{Contribution \ margin}

= \frac{30000+20000}{4}

= \frac{50000}{4}

= 12,500 \ units

Now,

The contribution margin per composite unit will be:

= Selling \ price-Variable \ cost

= 150-50

= 100 ($) per unit

4 0
3 years ago
_____ are different, even within the same job. A. Occupations b. Workplaces c. Careers d. Interest rates Please select the best
nevsk [136]
B) workplaces

The location may be different but the job stays the same
7 0
3 years ago
Clementine Company makes skateboards. They prepare master and flexible budgets and then perform variance analysis after the budg
SashulF [63]

Answer:

Clementine's sales volume variance = (BQ - AQS) x Standard profit margin

                                                             = (974 - 1,051) x ($95 - $49)

                                                             = $3,542(F)

 

Explanation:  Sales volume variance is the difference between budgeted quantity and  actual quantity sold multiplied by standard profit margin. Standard profit margin is the excess of budgeted selling price over actual selling price.

4 0
3 years ago
Accounts that are increased with a debit include A : revenue. B : assets. C : equity. D : liability.
Akimi4 [234]

Answer:

B : assets.

Explanation:

As we know that

The debit side records the expenses, assets, and losses plus there is always a debit balance. If there is an increase in these above accounts than it also contains a debit balance

While the credit side records the revenues, gains, liabilities, and the stockholder equity. If there is an increase in these above accounts than it also contains a credit balance

3 0
3 years ago
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