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
Katen [24]
3 years ago
6

A company purchased a commercial dishwasher by paying cash of $4,200. The dishwasher's fair value on the date of the purchase wa

s $4,590. The company incurred $330 in transportation costs, $230 installation fees, and paid a $160 fine for illegal parking while the dishwasher was being delivered. For what amount will the company record the dishwasher
Business
1 answer:
kogti [31]3 years ago
5 0

Answer:

$4,760

Explanation:

The value a company will record for the dishwasher will be the amount that was used to purchase the dishwasher plus the associated cost of transporting and installing the dishwasher.

The price of the dishwasher to be used is the actual amount it was bought and not the fair value.

Amount recorded for dishwasher= Price + Transportation + Installation fees

Amount recorded for dishwasher= 4,200 + 330 + 230

Amount recorded for dishwasher= $4,760

Note the fee for illegal parking is not considered because it is not a direct cost related to purchase of the dishwasher

You might be interested in
Jake is leaving Shoe Warehouse to open his own shoe boutique. Jake currently earns $40,000 a year at Shoe Warehouse, but he is e
lyudmila [28]

Answer:

$79,000

Explanation:

Given that,

Implicit cost and explicit costs are as follows:

Earning at Shoe Warehouse = $40,000 a year

Jake has rented a storefront = $40,000 per year

Spend = $11,000 on inventory

Total revenue = $170,000 per year

Therefore,

Economic profit = Total revenue - (Explicit cost + implicit costs)

                          = $170,000 - ($11,000 + $40,000 + $40,000)

                          = $170,000 - $91,000

                          = $79,000

8 0
3 years ago
The market price of a security is $50. Its expected rate of return is 14%. The risk-free rate is 6% and the market risk premium
Ber [7]

Answer:

The market price of the security is $31.81

Explanation:

In order to calculate the market price of the security if its correlation coefficient with the market portfolio doubles we would have to calculate first the following:

First, calculate the dividend expected after one year with the following formula:

D=P*E(ri)

D=$50*0.14

D=$7

Next, we would have to calculate the beta of the security using the CAAPM Equation:

βi= E(ri)-rf/E(rm)-rf

=0.14-0.06/0.085

=0.9412

Next, we have to calculate the new beta due to the change in the correlation coefficient with the following formula:

β=correlation coefficient/σm*σs

=2*0.941

=1.882

Next, Calculate the new expected return as follows:

E(ri)=rf+βi(E(rm)-rf)

=0.06+(1.882)(0.085)

=0.22

Finally we calculate the new piece of the security as follows:

P=D/E(ri)

=$7/0.22

=$31.81

The market price of the security is $31.81

3 0
3 years ago
A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools
marishachu [46]

Answer:

Break-even point in dollars= $36,364

Explanation:

Giving the following information:

A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000.

To calculate the break-even point in dollars for the firm, we need to use the following formula:

Break-even point (dollars)= Total fixed costs / [(weighted average selling price - weighted average variable expense)/ weighted average selling price]

weighted average selling price= (selling price* weighted sales participation)= $50

weighted average variable cost= (variable cost* weighted sales participation)

weighted average variable cost= (25*0.5 + 20*0.50)= $22.5

Break-even point in dollars= 20,000/ [(50 - 22.5)/ 50]= $36,364

4 0
3 years ago
Your firm has the responsibility to review transactions and activities occurring after the year-end to determine whether anythin
Art [367]

Answer: Subsequent events

Explanation:

Reviewing transactions is what gives accountability in organization, without this organizations would not know when they are running at a loss or making gains. The best time to do this is at the end of yearly transactions, the procedure required to verify this transactions are referred to as subsequent events, meaning events that happened as time went on.

This act is carried out most times by auditors

7 0
3 years ago
What is the typical number of payments that can be made toward paying off a revolving credit loan?
lara [203]

THE ANSWER IS UNLIMITED


6 0
3 years ago
Read 2 more answers
Other questions:
  • TRUE OR FALSE: It is always free to use an ATM if you have a debit card
    13·2 answers
  • Omnidata uses the annualized income method to determine its quarterly federal income tax payments. It had $100,000, $50,000, and
    15·1 answer
  • Lisa Smith decided to start her CPA practice as a professional​ corporation, Smith​ CPA, PC. The corporation purchased an office
    8·1 answer
  • Flintlnc. provided the following information for the year 2017.
    12·1 answer
  • Adams operates his $57500 firm using his own equity. Bob operates his firm with $28750 of his own money plus $28750 of debt at a
    9·1 answer
  • If the old machine is replaced, it can be sold for $32800. Which of the following amounts is a sunk cost? $246000 $820000 $28700
    8·1 answer
  • Babble, Inc., buys 405 blank cassette tapes per month for use in producing foreign language courseware. The ordering cost is ​$1
    14·1 answer
  • This is for business management, can anyone help me?
    8·1 answer
  • A person can benefit from specialization and trade by obtaining a good at a price that is.
    8·1 answer
  • Which are examples of a person changing careers? Check all that apply.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!