Question

HELP PLEASE:

Bahama Catering purchased a commercial dishwasher by paying cash of $5,100. The dishwasher's fair value on the date of the purchase was $5,480. The company incurred $420 in transportation costs, $370 installation fees, and paid a $300 fine for illegal parking while the dishwasher was being delivered. For what amount will Bahama record the dishwasher?
a. $5,480
b. $6,190
c. $5,890
d. $6,270

Answer 1

all the expenses incurred make up the total cost. So it is:
5100 + 420 + 370 + 300 = $6190 (B)

Answer 2

Thank you:)

Answer 3

yw.

Answer 4

Can you please check if it is correct?

Kansas Enterprises purchased equipment for $76,500 on January 1, 2012. The equipment is expected to have a ten-year life, with a residual value of $7,950 at the end of ten years.

Using the double-declining balance method, depreciation expense for 2012 would be (Do not round your intermediate calculations):
a. $7,650.
b. $15,300.
c. $13,710.
d. $7,350.
I chose B

Answer 5

sorry, don't know this one.

Answer 6

I guess ur answer is wrong:(

Answer 7

For the first question(Bahama Catering), $6190 (B) is wrong, as the parking ticket should be expensed as incurred since it is not a cost necessary to get the asset ready for use.