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
andriy [413]
3 years ago
12

On August 1, Red Company purchased computer equipment for $10,000 cash and also gave 100 shares of White common stock that Red C

ompany held as an investment. The White common stock cost Red Company $5,000 and on August 1 had a fair value of $4,200. The installation costs for the computer equipment were $700 and shipping costs were $500. What amount should be the total amount debited to the computer equipment account
Business
1 answer:
hodyreva [135]3 years ago
7 0

Answer:

Explanation:

A capitalized cost of an asset is made up of

1 . Purchase price import duties and non refundable taxes less trade discount and rebate

2. Direct cost of bringing the asset to its present position

3. Fair value given in exchange for the the assets

Cost of Computer

Purchase Price -                                $10,000

Fair value of White common stock - $4,200

Installation cost -                                  $  700

Shipping cost -                                      $  500

Total Cost -                                             $15,400

You might be interested in
An investor buys an 8% municipal bond in the secondary market on a 10% basis. The investor does not accrete the bond discount an
adell [148]

Answer: C

Explanation:

This is because although the coupon rate is devoid of federal income tax any market discount is taxed as interest income earned. So so if there is a way that they can be taxed without jeopardizing their basic Federal income tax-free status, why not? The discount can be accreted annually and tax paid, or the tax can be paid at maturity or sale date.

5 0
3 years ago
Read 2 more answers
Three sources of flexibility in completing primary and support activities are particularly useful for firms using the integrated
AURORKA [14]

Answer:

The correct answer is: b. flexible manufacturing systems, total quality management, and information networks.

Explanation:

A Flexible Manufacturing System or FMS is a group of interconnected workstations through an automated material transport system.  The transport system, as well as other storage systems that can be used, must be automatic. The whole set is controlled by computer

It is known as total quality management to a business management strategy that consists of the study and assessment of the concept of quality in each of the phases of an organizational process. Its purpose is the constant improvement of goods and services offered and the achievement of greater customer satisfaction.

6 0
3 years ago
Which statement best describes the difference between a market and traditional economy
icang [17]

Answer:  in a traditional economy, decisions are based on habit and custom

Explanation:

4 0
1 year ago
Managers can be classified in terms of either their level in the organization at which they work and or their area of specializa
777dan777 [17]

Answer is true.

Managers who are classified in terms of their level in the organization are known by titles such as store manager, assistant manager or co-manager.

Managers who are classified by their area of specialization have titles such as the marketing manager, the accounting manager or the sales manager.

5 0
3 years ago
Management career skills include managing _____.
Svetllana [295]

Answer:

the correct answer is finances

3 0
3 years ago
Other questions:
  • Why is the demand for professional labor generally high relative to the supply compared to the demand for unskilled or semi skil
    7·2 answers
  • A large computer manufacturer forbids its executives and managers from serving as directors or officers for Hewlett-Packard or a
    5·1 answer
  • Identify each of the following reconciling items as: An addition to the cash balance according to the bank statement. A deductio
    13·1 answer
  • Identify the following questions as most likely to be asked by an internal or an external user of accounting information
    9·1 answer
  • One reason some manufacturing companies began moving production to China in the early 2000s was due to lower wages that could be
    14·1 answer
  • A major reason Enron used special purpose entities was: a. To increase equity dilution b. To increase working capital c. Off-bal
    13·1 answer
  • The McDonald's fast-food restaurant on campus sells an average of 4,000 quarter-pound hamburgers each week. Hamburger patties ar
    12·1 answer
  • In 2010, many high-income countries will be focused on the short-term economic horizon due to aggressive and often controversial
    10·1 answer
  • Financial information is presented below: Operating expenses $ 63000 Sales returns and allowances 2000 Sales discounts 5000 Sale
    10·1 answer
  • The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current info
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!