A Machine Was Built for $125,500 During July, the Cost

question 55

Multiple Choice

A machine was built for $125,500 during July, the cost included $750 in interest expense.The company had to pay $4,000 for shipping and another $2,000 for insuring the parts.The capitalized cost of the equipment was:

• A)$124,750
• B)$125,500
• C)$131,500
• D)$132,250

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Definitions:

Torts

Legal wrongs committed against a person or property, excluding breach of contract, for which the law provides a remedy in the form of an action for damages.

Principal

The main party to a transaction or agreement, often responsible for the obligations and benefits that arise from the contract.

UPA

Uniform Partnership Act, a standardized set of laws to govern the formation, operation, and dissolution of partnership businesses in the United States.

Liability

A legal responsibility or obligation, often involving the requirement to compensate for loss or damage.