A large computer retailer has taken year-end inventory and has valued 80 Microgate X computers at $ 1,100 each, or $ 88,000—the original cost of the Microgate Xs. Current technologies have allowed the supplier to reduce the cost of the Microgate X to $ 900 each, although the computer store has not purchased any Microgate Xs at this price. Is the owner doing anything unethical by valuing the 80 Microgate Xs at the original cost of $ 88,000?
Answer to relevant QuestionsWhat costs should be included in the purchase of property and equipment? Give examples of possible expenditures that should be included in determining the total cost of an asset such as a machine. Identify the five different types of property and equipment and give an example of each.On April 28, Whitmire Exercise Mart discarded exercise equipment that cost $ 7,300. The Accumulated Depreciation account shows depreciation of $ 7,300 as of the previous December 31. Make the entry in general journal form to ...During a three-year period, Craig Excavation completed the following transactions pertaining to its front-end loader: Year 1 June 30 Bought a front-end loader, $ 39,500, paying $ 15,500 in cash and issuing a series of four ...Now that you understand how a company accounts for property and equipment, let’s review Ford Motor Company’s long-term assets. Go to http://corporate.ford.com / investors and click Reports & SEC Filings, then Annual ...
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