A company purchased a piece of equipment by paying $5,000 cash. Shipping cost of $400 to get the equipment to its factory was also incurred. The fair value of this equipment is $7,000. For what amount should the company record the equipment?
A. $5,400.
B. $5,000.
C. $7,400.
D. $7,000.
Answer: A
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Consider three alternative bonds that you might invest in, each of which matures in one year. The following table shows the probability that you will receive each possible return. For example, if you buy bond A, the probability is 90 percent that your return will be 20 percent and the probability is 10 percent that your return will be ?100 percent (in other words, you lose the entire amount invested).
BondProbability Return Bond A90% 20% 10% ?100% Bond B75% 40% 25% ?40% Bond C60% 10% 40% ?10% ? a.Calculate the expected return for all three bonds in percentage terms. b.The standard deviations of the returns on these bonds are: Bond A, 36.0 percent; Bond B, 34.6 percent; Bond C, 9.8 percent. If you are extremely risk averse, which of the three bonds would you buy? Why? c.Would a risk-averse investor ever buy Bond A instead of one of the other bonds? Why or why not? Explain and show all your work. In your calculations, you may round after three significant digits. What will be an ideal response?
________ is an interview conducted by a trained moderator among a small group of respondents in an unstructured and natural manner
A) An experiment B) A focus group C) A quantitative survey D) A depth interview E) A moderator group
Which of the following acts has provisions for combating identity theft?
A. The Fair Credit Billing Act B. The Gramm-Leach-Bliley Act C. The Fair Credit and Charge Card Disclosure Act D. The Fair and Accurate Credit Transactions Act
You have a chance to buy an annuity that pays $43,000 at the beginning of each year for 5 years. You could earn 4.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
A. $197,263.61 B. $215,017.33 C. $185,427.79 D. $244,606.87 E. $209,099.42