Assume that Trader Pete's, an organic food retailer in the United States, recently purchased a new refrigeration system for its Washington, DC, store. Trader Pete's paid $1.3 million for the refrigeration unit and paid an additional $120,000 to modify the unit to meet its specific needs. Trader Pete's paid $55,000 for the transportation and installation of the unit, plus $48,000 for an annual
insurance premium for the first year, which begins next month. Finally, assume that Trader Pete's hired a refrigeration technician, who is charged with the maintenance of the unit; that technician's annual salary is $80,000 . How much should Trader Pete's record as the acquisition cost of the refrigeration unit?
a. $1,300,000
b. $1,420,000
c. $1,475,000
d. $1,523,000
e. $1,603,000
C
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Trading securities are valued on the balance sheet at
A) lower of cost or market. B) cost. C) market value. D) cost, adjusted for the effects of interest.
Steve applied for a position at BluTech. The interviewers predicted that he would not succeed in the position and rejected him. Steve was then hired in a similar position at RayZo, BluTech's main competitor. Steve was very successful at RayZo, playing a key role in the development of a product that took market share away from BluTech. From BluTech's position, the selection decision regarding Steve was a
A. hit; Steve would have succeeded on the job. B. hit; Steve would have failed on the job. C. miss; Steve would have succeeded on the job. D. miss; Steve would have failed on the job.
Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is
a. confiscation. b. defalcation. c. dumping. d. expropriation.
Noise, in the traditional communication process, refers to
A. the encoded message before it is decoded. B. messages which are too loud or bold. C. any distractions that reduce the effectiveness of the communication process. D. efforts by a firm's competitors to block its message channel. E. radio advertising interference only.