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Lostsunrise [7]
3 years ago
9

Anchor Company purchased a manufacturing machine with a list price of $94,000 and received a 2% cash discount on the purchase. T

he machine was delivered under terms FOB shipping point, and transportation costs amounted to $4,000. Anchor paid $5,700 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $7,400 for the first year of operations. What is the cost of the machine
Business
1 answer:
Neko [114]3 years ago
5 0

Answer:

$101,820

Explanation:

the total cost basis of the machine:

  • purchase price = $94,000 x 98% = $92,120
  • transportation costs = $4,000
  • installation costs = $5,700
  • insurance costs = $0 (operating expense)

total asset basis = $101,820

A business can capitalize certain necessary costs when it acquires an asset and they include freight, installation and insurance costs. But the insurance costs that can be capitalized are those incurred to insure an asset while it is being transported or installed, after the installation is over any insurance costs are operating costs.

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a manufacturer of washing machines has expanded its plant and created excess capacity, just as the general economy takes a downt
levacccp [35]

Because the general economy takes a downturn, the company is likely to offer rebates and incentives for customers who purchase washing machines.

<h3>What are the rebates and incentives?</h3>

In marketing, these are techniques of marketing promotion that are used to entice, induce prospective customers.

Therefore, as the firm has expanded its capacity where the the general economy takes a downturn, it is likely to offer rebates and incentives for customers who purchase washing machines.

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3 0
2 years ago
Monopolistically competitive markets and perfectly competitive markets share some similarities but differ in a number of ways. O
FinnZ [79.3K]

Answer:

feature differentiated products

Explaination:

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6 0
3 years ago
A $10,000 face value treasury bond is quoted at a price of 102.311 with a current yield of 4.28 percent. what is the coupon rate
nataly862011 [7]

The coupon rate is 4.37 %.

Explanation:

The current yield formula can be used to determine the coupon payment which would thereafter be used to compute coupon rate as required:

current yield = coupon payment/current market price

current yield=4.28%

coupon payment=unknown

current market price=102.311 % *$10,000

current market price=$102.311

4.28%=coupon payment /$ 102.311

coupon payment=$10231.1*4.28%

coupon payment=$437.89108

coupon rate=coupon payment/face value

coupon rate=$437.89108 /$10,000

coupon rate=4.37%

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7 0
2 years ago
The nation of Aquilonia has decided to end its policy of not trading with the rest of the world. When it ends its trade restrict
djverab [1.8K]

Answer:

higher in the steel market, lower in the rice market, and unchanged in the TV market

Explanation:

Producer surplus can be defined as the variance between the amount an individual or nation is willing to take for certain quantity of a product versus the amount they receive when the goods are sold at the market value. For the nation of Aquilonia to be importing rice that means producer surplus is higher because the variance is low, it will export rice because the producer variance is low, and hence it wants to give to other countries. But since it is neither exporting nor importing TV, that means that the producer surplus remained the same even after the change in policy.

7 0
4 years ago
Painting expenses is debit or credit​
miss Akunina [59]

Answer:

Debit

Explanation:

If its not a house or a big invesment into a buisness it is debit

3 0
2 years ago
Read 2 more answers
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