Hyde Company traded in an old machine with a book value of $15,000 on a new machine. The exchange did not have commercial substance. The new machine, which had a cash price of $75,000, was purchased for $64,000 cash plus the old machine. Hyde should record the cost of the new machine as
a. $64,000.
b. $71,000.
c. $75,000.
d. $79,000.
C
You might also like to view...
Barbara's Boats uses the periodic inventory system and the net method of accounting for purchases. The company had the following transactions during January:January 6: Purchased $10,000 of inventory. The seller's credit terms are 2/10, n/30.January 31: Due to an oversight, the invoice was not paid within the discount period. Full payment was made on January 31.Prepare journal entries to record each of the preceding transactions.
What will be an ideal response?
Capacity-reservation contracts ______.
A. provide the manufacturer with the option of reserving additional production capacity with the supplier to be exercised in the future as needed B. have the potential to reduce the manufacturer’s procurement costs C. are an increasingly popular method for allocating risks across suppliers and buyers in high-tech supply chains D. have the potential to reduce the use of the supplier’s capacity
On September 1, 2019, Rowen Manufacturing issued a $90,000, 6-month, 9% note payable to purchase equipment. At December 31, 2019, the company records an adjusting entry to accrue interest incurred by not paid. The company pays the note with interest at the maturity date.What is the adjusting journal entry at December 31 to record the accrued interest on the note payable?
A. Debit Interest Expense and credit Interest Payable for $3,600. B. Debit Interest Expense and credit Interest Payable for $8,100. C. Debit Interest Payable and credit Cash for $3,600. D. Debit Interest Expense and credit Interest Payable for $2,700.
The procedure of rethinking and radical redesign of business processes to achieve dramatic organizational improvements is called:
A) competitive benchmarking. B) continuous improvement. C) process benchmarking. D) business process reengineering.