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BartSMP [9]
2 years ago
6

Intel buys a manufacturing machine for $100,000 for use in making computer processors. The company also paid 7% ($7,000) sales t

ax on the machine. It cost $3,000 to ship the machine to Intel's plant. Intel paid an additional $1,500 to have the machine installed and tested for initial use. Each month, the machine requires $1,000 worth of oil and supplies to keep running. What is the machine's original cost basis (also called book value) that the firm records on the balance sheet
Business
1 answer:
Vadim26 [7]2 years ago
3 0

Answer:

$110,000

Explanation:

Calculation for What is the machine's original cost basis that the firm records on the balance sheet

Machine's Original cost basis

Machine Cost $100,000

Add Sales Tax $7,000

Add Shipping Cost $3,000

Machine's Original cost basis $110,000

($100,000+$7,000+$3,000)

Therefore the machine's original cost basis that the firm records on the balance sheet will be $110,000

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A cost incurred in the past that is not relevant to any current decision is classified as a(n):_________
inessss [21]

A cost incurred in the past that is not relevant to any current decision is classified as a(n): Sunk costs

This is further explained below.

<h3>What are Sunk costs?</h3>

Generally, A cost that has already been incurred but cannot be recouped is referred to as a "sunk cost" in economics and the process of making business decisions. In contrast to sunk costs, prospective costs are future expenses that might be avoided if action is done, while sunk costs have already been incurred.

In conclusion, A cost that was incurred in the past but is not relevant to any choice that is being made at this time is considered to be a(n): Incurred expenses

Read more about Sunk costs

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6 0
1 year ago
Which of the following would be best considered to be an agency conflict problem in the behavior of the following financial​ man
fredd [130]

Answer:

A. Bill chooses to pursue a risky investment for the​ company's funds because his compensation will substantially rise if it succeeds. 

Explanation:

An agency conflict problem usually arises when the agent (managers) do not act in the best interest of his principals (e.g. shareholders) usually because of selfish interests of the agent (manager).

I hope my answer helps you

3 0
3 years ago
The budget director for Kanosh Cleaning Services prepared the following list of expected selling and administrative expenses. Al
Harrizon [31]

Answer:

Kanosh Cleaning Services

a. Schedule of Cash Payments for S&A Expenses

                                                                       October November December

Equipment lease expense                                     $7,500  $7,500    $7,500

Prior month’s salary expense, 100%                               0    8,200       8,700  

Cleaning supplies                                                     2,800    2,730      3,066

Insurance premium                                                  7,200            0              0

Depreciation on computer                                              0            0              0

Rent                                                                           1,700      1,700        1,700

Miscellaneous expenses                                           700         700          700

Total disbursements for operating expenses  $19,900  $20,830  $21,666

b. Salaries payable = $9,000

c. Prepaid insurance = $3,600

Explanation:

a) Data and Calculations:

                                                October   November  December

Budgeted S&A Expenses

Equipment lease expense       $7,500        $7,500      $7,500

Salary expense                           8,200          8,700        9,000

Cleaning supplies                      2,800          2,730        3,066

Insurance expense                     1,200          1,200         1,200

Depreciation on computer         1,800          1,800         1,800

Rent                                             1,700          1,700         1,700

Miscellaneous expenses             700             700           700

Total operating expenses    $23,900    $24,330   $24,966

Schedule of Cash Payments for S&A Expenses

                                                                       October November December

Equipment lease expense                                     $7,500  $7,500    $7,500

Prior month’s salary expense, 100%                               0    8,200       8,700  

Cleaning supplies                                                     2,800    2,730      3,066

Insurance premium                                                  7,200            0              0

Depreciation on computer                                              0            0              0

Rent                                                                           1,700      1,700        1,700

Miscellaneous expenses                                           700         700          700

Total disbursements for operating expenses  $19,900  $20,830  $21,666

b. Salaries payable = $9,000

c. Prepaid insurance = $3,600 ($7,200 - $3,600)

6 0
2 years ago
On January 2 Kelly company performed $800 worth of services for a client. The client paid $100 immediately, but promised to pay
Sliva [168]

Answer:

$100, $700, $800

Explanation:

Calley Journal entries would include:

Debiting $100 to the cash account

Debit the $700 to the receivables account

Credit $800 to the revenue account

This follows the double entry rule that a credit in one account must correspond to at least one debit in another account.

We debit all asset accounts(receivables,cash) when increased and credit all liabilities account when increased. We credit all income account(revenue) when increased and debit all expenses account when increased.

6 0
3 years ago
Read 2 more answers
Lyons Company deducts insurance expense of $210,000 for tax purposes in 2021, but the expense is not yet recognized for accounti
Goryan [66]

Answer:

$42,000

Explanation:

Deferred tax liability can be defined as the tax liability which has been due for the current period but has not yet been paid such as installment sales receivable.

Insurance expense of $210,000

Tax rate of 20%

( $210,000 × .20 )

=$42,000

Therefore the amount of the deferred tax liability at the end of 2021 will be $42,000

6 0
3 years ago
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