Yocum Company Purchased Equipment on January 1 at a List

question 181

Multiple Choice

Yocum Company purchased equipment on January 1 at a list price of $120000 with credit terms 2/10 n/30. Payment was made within the discount period and Yocum was given a $2400 cash discount. Yocum paid $6000 sales tax on the equipment and paid installation charges of $1760. Prior to installation Yocum paid $4000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?

• A) $125360
• B) $129360
• C) $131760
• D) $123600

Identify the accounting treatment for unallocated positive acquisition differential.

Determine what constitutes significant influence and its indicators under IAS 28.

Distinguish between strategic and non-strategic investments based on accounting methods.

Recognize the accounting treatment of investments under IFRS 9.

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Definitions:

Sensor

A device that detects or measures a physical property (such as temperature, light, pressure) and records, indicates, or otherwise responds to it.

Photoelectric Sensors

Devices that detect objects, changes in light intensity, or proximity by emitting and receiving light.

Phototransistor

A semiconductor device that detects light and converts it into an electrical signal, used in various sensing and light detection applications.

Strain Gauge

A sensor whose resistance varies with applied force; it's used in mechanical engineering to measure strain on an object.