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max2010maxim [7]
2 years ago
10

Melinda Stoffers owns and operates ABC Print Co. During February, ABC incurred the following costs in acquiring two printing pre

sses. One printing press was new, and the other was purchased from a business that recently filed for bankruptcy. Indicate which costs incurred in acquiring the new printing press that should be debited to the asset account.
a. Fee paid to factory representative for installation
b. Freight
c. Insurance while in transit
d. New parts to replace those damaged in unloading
Business
1 answer:
tigry1 [53]2 years ago
7 0

Answer:

The answer is below

Explanation:

a. Fee paid to factory representative for installation - DEBITED to Asset account

b. Freight - DEBITED to Asset account

c. Insurance while in transit - DEBITED to Asset account

d. New parts to replace those damaged in unloading - NOT DEBITED to Asset account

To understand which costs incurred in acquiring the new printing press should be debited to the asset account, it should be noted that "new parts to replace those damaged in unloading" does not lead to improvement in assets, hence, it should be considered as Expense instead of being devoted into the asset account.

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Fleet Delivery Corporation is a public company with a market capitalization of less than $75 million. Fleet is poised to issue s
kondor19780726 [428]

Answer:

This enables Fleet to reduce costs of regulatory compliance in relation to the security issue

Explanation:

When a company is exempt under the Securities Act of 1993,this implies that when issuing securities in the market place,the stock exchange ,the company is not required to produce audited financial statements.

Auditing financial statements sometimes cost fortunes especially when it is also required that one of the Big-4 professional firms is to be consulted.

By not requiring audited financials,the costs of audit is saved,hence cost of compliance with exchange rules is reduced overall

5 0
3 years ago
The act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Securi
raketka [301]

Answer:

Federal Insurance Contributions Act

Explanation:

The Federal Insurance Contributions Act refers to a law that establishes the federal taxes that are deducted from employees' salaries to get the funds for social services like Medicare, disability insurance, among others. According to  this, the answer is that the act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Security and Medicare programs is called the Federal Insurance Contributions Act.

5 0
2 years ago
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the
sveta [45]

Answer:

a. Wholesale division.

Explanation:

The formula to compute for return on investment is shown below:

Return on investment = Operating Income ÷ Operating Assets

For Retail Division, it would be

= $2,500,000 ÷ $16,000,0000

= 15.625%

For Wholesale Division, it would be

= $6,000,000 ÷ $36,000,0000

= 16.67%

Based on the calculation, the wholesale division perform better

3 0
3 years ago
an owner can lease her building for $150,000 per year for three years. the explicit cost of maintaining the building is $50,000,
Charra [1.4K]

The present value of the stream of accounting profit is $262,431.6044 and The present value of the stream of economic profit is $91,851.0616.

<h3>Present value</h3>

a. The present value of the stream of accounting profit:

Present value=($150,000-$50,000)/1.07 +($150,000-$50,000)/ (1.07)² +($150,000-$50,000)/(1.07)³

Present value=($100,000)/1.07 +($100,000)/ (1.07)² +($100,000)/(1.07)³

Present value=$93,457.9439+$87,343.8728+$81,629.7877

Present value=$262,431.6044

b. The present value of the stream of economic profit:

Present value=($150,000-$50,000-$65,000)/1.07 +($150,000-$50,000-$65,000)/ (1.07)² +($150,000-$50,000-$65,000)/(1.07)³

Present value=($35,000)/1.07 +($35,000)/ (1.07)² +($35,000)/(1.07)³

Present value=$32,710.2804+$30,570.3555+$28,570.4257

Present value=$91,851.0616

Therefore the present value of the stream of accounting profit is $262,431.6044 and The present value of the stream of economic profit is $91,851.0616.

Learn more about present value here:brainly.com/question/20813161

brainly.com/question/15904086

#SPJ1

The complete question is:

an owner can lease her building for $150,000 per year for three years. the explicit cost of maintaining the building is $50,000, and the implicit cost is $65,000. all revenues are received, and costs borne, at the end of each year. if the interest rate is 7 percent, determine the present value of the stream of:

a. The present value of the stream of accounting profit.

b. The present value of the stream of economic profit.

3 0
2 years ago
Asuna hobe bulamadım​
AlekseyPX

Answer:

huh

Explanation:

8 0
3 years ago
Read 2 more answers
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