Use the Following Information to Answer Questions

question 104

Multiple Choice

Use the following information to answer questions
Jamison Company purchased the assets of Booker Company at an auction for $1,400,000.An independent appraisal of the fair value of the assets is listed below:
-On August 1, 2010, Hayes Corporation purchased a new machine on a deferred payment basis.A down payment of $3,000 was made and 4 monthly installments of $2,500 each are to be made beginning on September 1, 2010.The cash equivalent price of the machine was $12,000.Hayes incurred and paid installation costs amounting to $500.The amount to be capitalized as the cost of the machine is

• A)$12,000.
• B)$12,500.
• C)$13,000.
• D)$13,500.

---

Definitions:

Labor

Human work, especially physical, done in exchange for payment, and a fundamental component of the economy.

Scientific Management

A theory and management approach developed by F.W. Taylor, aiming to improve organizational efficiency through systematic study of work processes.

Job Control Unionism

A labor union strategy focusing on negotiating wages, working conditions, and job security for its members.

Postwar Era

The period immediately following the end of a war, often marked by recovery efforts, reconstruction, and significant societal and economic changes.