Answer:
True cost of the microwave is in 99% confidence interval:
Explanation:
Relevant data:
As we want to know the 99% confidence interval, the significance level is:
We need to estimate a confidence interval by a two tailed normal bell. Then we have:
The z-value for a probability of 0.005 in a normal standard distribution is 2.576
Confidence interval is given by;:
True cost of the microwave is in 99% confidence interval:
Answer: $495,000 User “Parrain” is the person who solved this question
Explanation: ALL costs that went into the DIRECT acquisition of the asset as well as COSTS TO SET IT UP for use by the firm should be accounted for in the amount recorded. In this case that would mean that the cost price, the closing fees and the modification fees all need to be accounted in the final amount. That would be $400,000 + $35,000 + $60,000= $495,000$495,000 should be recorded as the building's cost.
