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

question 46

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. Following ASPE, the capitalized cost of the equipment was

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

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Definitions:

1st Quartile

The value below which 25% of the observations in a dataset fall, also known as the 25th percentile.

3rd Quartile

The 3rd quartile, also known as Q3, marks the value below which 75% of the data in a dataset falls, effectively dividing the higher quarter of data from the rest.

Range

The gap between the maximum and minimum figures within a set of data.

Salaries

Regular payments made to employees for their work or services, typically expressed on an annual basis.