Ask Question
BusinessBusiness
27 September, 17:09

On August 1, Red Company purchased computer equipment for $10,000 cash and also gave 100 shares of White common stock that Red Company held as an investment. The White common stock cost Red Company $5,000 and on August 1 had a fair value of $4,200. The installation costs for the computer equipment were $700 and shipping costs were $500. What amount should be the total amount debited to the computer equipment account

+4
Answers (1)
  1. 27 September, 17:39
    0
    A capitalized cost of an asset is made up of

    1. Purchase price import duties and non refundable taxes less trade discount and rebate

    2. Direct cost of bringing the asset to its present position

    3. Fair value given in exchange for the the assets

    Cost of Computer

    Purchase Price - $10,000

    Fair value of White common stock - $4,200

    Installation cost - $ 700

    Shipping cost - $ 500

    Total Cost - $15,400
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On August 1, Red Company purchased computer equipment for $10,000 cash and also gave 100 shares of White common stock that Red Company held ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Kenneth was walking past a closed office door when he heard a top company executive yell, Sell my stock before the whole company goes under.
Answers (1)
Real data vs nominal data what is the difference
Answers (1)
At the project closure step, which activity is performed? A. documenting learning from the project B. documenting the project risks C. selecting the team members D. drafting the project proposal document
Answers (1)
Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%. Security Market Value Required Rate of Return Debt $ 20 million 6 % Preferred stock 10 million 8 Common stock 50 million 12 What is its WACC?
Answers (1)
Why is it important that money be divisible
Answers (1)
New Questions in Business
Explain what is meant by market research.
Answers (1)
Jean, a restaurant critic, publishes a review in a national daily that the sandwiches served at his friend's deli are usually not fresh. Tom, the owner of the deli, notices a significant decrease in customers after the review gets published.
Answers (1)
Why did the Soviet Union experience many surpluses and shortfalls? A) The labor force wasn't well educated B) The cold climate made farming hard C) Central planners could not manage every detail D) The country depended on imports to obtain resources.
Answers (1)
A hospitality operation has sales revenue of $462,000 with variable cost averaging 44%. Fixed costs are $188,000. The owner wants a net income after tax of $50,400 based on a tax rate of 28%. a.
Answers (1)
True or false fdr was eager to use deficit spending to end the economic crisis.
Answers (1)
Home » Business » On August 1, Red Company purchased computer equipment for $10,000 cash and also gave 100 shares of White common stock that Red Company held as an investment. The White common stock cost Red Company $5,000 and on August 1 had a fair value of $4,200.
Sign Up Forgot Password?