Use the Following Information to Answer Questions

question 106

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, Mendez Corporation purchased a new machine on a deferred payment basis.A down payment of $2,000 was made and 4 annual installments of $6,000 each are to be made beginning on September 1, 2010.The cash equivalent price of the machine was $23,000.Due to an employee strike, Mendez could not install the machine immediately, and thus incurred $300 of storage costs.Costs of installation (excluding the storage costs) amounted to $800.The amount to be capitalized as the cost of the machine is

• A)$23,000.
• B)$23,800.
• C)$24,100.
• D)$26,000.

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Definitions:

Sulphur Dioxide

A colorless gas with a sharp, choking smell, used in industry and produced by volcanoes, known for its role in acid rain and as a pollutant affecting respiratory health.

Greenhouse Gas Emitter

Any entity, such as a company, vehicle, or process, that releases greenhouse gases into the atmosphere, contributing to global warming and climate change.

Mean Global Temperature

The average temperature of the Earth's surface as measured across various global locations over a specific period.

Degrees Celsius

A unit of temperature measurement in the metric system where water freezes at 0 degrees and boils at 100 degrees under standard atmospheric conditions.