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Tanya [424]
3 years ago
13

Holiday Laboratories Laboratories purchased a high speed industrial centrifuge at a cost of $420,000. Shipping costs totaled $15

,000. Foundation work to house the centrifuge cost $8,000. An additional water line had to be run to the equipment at a cost of $3,000. Labor and testing costs totaled $6,000. Materials used up in testing cost $3,000. The capitalized cost is:
Business
1 answer:
blsea [12.9K]3 years ago
4 0

Answer:

$455,000

Explanation:

Given that,

high speed industrial centrifuge at a cost = $420,000

Shipping costs = $15,000

Foundation work =  $8,000

additional water line = $3,000

Labor and testing costs = $6,000

Materials used up in testing = $3,000

Total Costs to be capitalized:

= High-speed industrial centrifuge + Shipping costs + Foundation Work + Additional Water Line + Labor and testing costs + Materials used in testing

=  $420,000 + $15,000 + $8,000 + $3,000 + $6,000 + $3,000

= $455,000

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An increase in accounts receivable will result in a(n) ______ in cash from sales revenue when using the direct method to determi
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When using the direct method for cash flows, one will notice that an increase in accounts receivable would result in a <u>DECREASE </u>in cash.

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Because the people did not pay cash for the goods yet took the goods, the company will see a reduction in its cash balance as the cash value of the goods left the company and there was no cash inflow from that activity.

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If government cuts taxes. A. after tax income should increase shifting AD to the right to a higher equilibrium level of output B
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