Answer:
$41,500
Explanation:
Calculation to determine What was the initial cost of the machine to be capitalized
Purchase price $35,000
Add Freight $1,500
Add Installation $3,000
Add Testing $2,000
Total Cost $41,500
Therefore the initial cost of the machine is $41,500
Answer:
External failure costs.
Explanation:
These are explained to be the faults or defects a customer finds out or see after receiving his good and leaves the factory or finds out when goods or services has been delivered to him/her.
This can be either internal or external. When seen to be an internal aspect of the failure, costs result from identification of defects before they are shipped to customers. Some of these could include rejected products, reworking of defective units, scrap and also downtime caused by quality problem. It is said that a firms appraisal activities creates chances greater than the chance of catching defects internally and the greater the level of internal failure costs. This is the price that is paid to avoid incurring external failure costs, which can be devastating.
Answer:
$235,000
Explanation:
A company can capitalize the cost of assets, delivery cost, legal & documentation charge and any other directly attributable cost that is incurred to bring the asset in the condition as intended by management.
Therefore, cost of asset, title fee and building modification fee shall be added in the cost of asset as follows:
Cost of Asset 200,000
Lawyer and title fee 20,000
Building Accommodation <u> 15,000</u>
Total <u>235,000</u>
Answer and Explanation:
An advertisement that I have seen frequently and that has caught my attention is an advertisement about Shampoo for dogs. This announcement has a color palette that I like very much, it has a feeling of balance and freshness. This makes me believe that the dog will feel these sensations if he uses this product, which makes me want to buy it immediately. The dog images, used in the ad, also reinforce this desire, since all dogs are well treated and with very beautiful hair.
However, an ad that has not convinced me to buy the product is an advert about face moisturizer. Although the advertisement is well produced, it promises a miraculous product with effects beyond the capacity of a moisturizer. When watching the ad I feel somewhat deceived and I have negative feelings about the product.
Answer:
$4,000
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest × number of months ÷ (total number of months in a year)
= $100,000 × 12% × ( 4 months ÷ 12 months)
= $4,000
The four months is taken from Jan 2022 to May 2022
We simply applied the simple interest formula to determine the interest expense and the same is shown above
