Blocker Company Recently Acquired Two Items of Equipment

question 51

Multiple Choice

Blocker Company recently acquired two items of equipment. The transactions are described below:
June 10:
Acquired a press at an invoice price of $5,000, subject to a 2% cash discount which was taken. Costs of freight and insurance during shipment were $120. Installation costs were $250.
November 12:
Acquired a welding machine at an invoice price of $4,000, subject to a 3% cash discount which was NOT taken. Additional welding supplies were acquired at a total cost of $200.
The increase in the equipment account as a result of the above transactions would be

• A) $9,150.
• B) $9,270.
• C) $9,370.
• D) $9,570.

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Definitions:

Parallel

Entities or processes that are happening simultaneously without intersecting or affecting each other directly.

Variables

Elements, features, or factors that can be changed and measured in an experiment to determine their effects.

Main Effect

In analysis of variance, when a factor or an independent variable has a significant effect upon the outcome variable.

ANOVA

Short for Analysis of Variance, a set of statistical techniques used to compare the means of three or more samples.