1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AnnyKZ [126]
3 years ago
5

On March 1, Squire Company purchased a new stamping machine with a list price of $24,000. The company paid cash for the machine;

therefore, it was allowed a 3% discount. Other costs associated with the machine were: transportation costs, $550; sales tax paid, S1,680; installation costs, $450; routine maintenance during the first month of operation, $500. The cost recorded for the machine was:A. $23,730
B. $24,000
C. $25,960
D. $26,680
Business
2 answers:
Nikitich [7]3 years ago
5 0

Answer:

C. $25,960

Explanation:

Cost of asset includes all the cost involved to acquire and install the asset. In simple term all the costs that are necessary to make the asset usable are capitalised and added to the cost of the asset.

In this question stamping machine has following cost which need to be capitalised.

Discounted Price = $24,000 x ( 100% - 3% ) = $24,000 x 97% = $23,280

Transportation cost = $550

Sales Tax = $1,680

Installation cost = $450

Total cost to be capitalized = $23,280 + $550 + $1,680 + $450 = $25,960

Routine Maintenance cost is the routine / period cost which incur every month, It is not necessary to make the asset usable and it is incurred after the asset is used.

Ilia_Sergeevich [38]3 years ago
5 0

Answer:

C. $25,960

Explanation:

The cost of an asset includes all cos incurred in making the asset available for use. These includes the cost of the item net all discounts, sales tax, freight cost etc.

As long as the cost is necessary for the asset to be available for use, such cost will be capitalized with the cost of the item of asset. Other cost such as maintenance, insurance costs are expensed and not considered as a part of the cost of the asset.

Hence, the cost recorded for the machine

= (100 -3)% *$24,000 + $550 + $1,680 + $450

= $25,960

You might be interested in
A corporation, like a(n)_______, may file suit or _______, or may form a contract or breach a contract.
eimsori [14]

A corporation, like an, can enter into contracts, be sued, sue another party, and launch lawsuits against other parties.

<h3>What is a file suit?</h3>

Simply put, to file a lawsuit is to complete and submit documents to a court, either independently or with the aid of an attorney, requesting for the lawsuit to move forward. In order to obtain compensation for "damages" that have been experienced as a result of negligence, the person is suing another person or an entity, or both.

The person or entity being sued is frequently referred to as the defendant, whereas the person or entity being sued is frequently referred to as the plaintiff.

To learn more about file suit, refer to:

brainly.com/question/28020083

#SPJ4

8 0
2 years ago
In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five y
KiRa [710]

Answer:

Explanation:

Calculation for 5th year dividend.

Year Dividend Growth Dividend

1 1.23 1.18 1.45

2 1.45 1.18 1.71

3 1.71 1.18 2.02

4 2.02 1.18 2.38

5 2.38 1.18 2.81

Now we find EPS for 5th year through payout ratio.

EPS5 = D5 / Payout ratio

EPS5 = $2.81 / 0.30

EPS5 = $9.37

Calculation for price.

P0 = Benchmark PE ratio x EPS5

P0 = 18 ($9.37)

P0 = $168.66

B. What is the stock price today.

Year Dividend Table value at 14% PV of dividend

1 1.45 0.8771 1.27

2 1.71 0.7694 1.32

3 2.02 0.6749 1.36

4 2.38 0.5920 1.41

5 171.47 0.5193 89.04

Total 94.40

Stock price today = $94.40

6 0
3 years ago
Read 2 more answers
Anne has chosen how many bagels and how many units of cream cheese she would buy this month. She has $20 to spend on these two g
Colt1911 [192]

Answer:

The correct answer is:  her marginal benefit per dollar for bagels will decrease, and her marginal benefit per dollar for cream  cheese will increase.

Explanation:

Anne has $20 to spend on two goods bagels and cream cheese.

The marginal benefit per dollar for bagels is $6.

The marginal benefit per dollar for cream cheese is $10.

If she decides to buy more bagels and less cream cheese, the marginal benefit per dollar for bagels will decrease and marginal benefit per dollar for cream cheese will increase.

The marginal benefit per dollar for a commodity is the ratio of marginal utility derived from consuming the last unit of the commodity upon price of the commodity.

As more and more quantity of a commodity is consumed the marginal benefit per dollar for it will go on declining. This is because the marginal utility derived from each additional unit will go on declining while price will remain the same. The less the commodity is consumed, the marginal benefit per dollar for it will increase.

5 0
3 years ago
TMegan receives a phone call from her insurance agent. The agent informs her that although she has homeowner's insurance and car
natulia [17]

Answer:

unsought

Explanation:

Based on the scenario being described within the question it can be said that this is an example of an unsought product. This term refers to a product in which an individual does not care much about or is even interested in purchasing. Which in this situation Megan has not given much thought into life insurance and is not looking to purchase it, but is aware of it due to the insurance agent's call.

6 0
3 years ago
5. What is the purpose of a consumer cooperative?
Neko [114]
I think the answer is d
7 0
3 years ago
Other questions:
  • Jeff wants to open a basic savings account. He should go to a financial services company a commercial bank an insurance company
    15·2 answers
  • Which of the following would not be considered an external user of accounting data for the GHI Company? Customers. Management. I
    11·1 answer
  • Meredith inc. is a manufacturer of art supplies. the company has announced plans to enter into an equity strategic alliance with
    8·2 answers
  • You produce T-shirts, and it costs $3 to make each shirt. If you choose a price of $5 for each shirt, then you will _____.
    14·1 answer
  • Business had been humming along just fine until the recession hit. Peterbilt adjusted by laying off employees until the recessio
    9·1 answer
  • Suppose that for each one-percentage-point increase in the interest rate, the level of investment spending declines by $0.5 bill
    5·1 answer
  • As a manager of the NHQ project, you are performing quantitative risk analysis. You have discovered that one project risk has a
    10·1 answer
  • On January 15, 2020, Vern purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the rec
    6·1 answer
  • Employees at Rayon Enterprises earn one day a month of vacation compensation (twelve days total each year). Vacation compensatio
    12·1 answer
  • Question 7 of 10
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!