Anchor Company Purchased a Manufacturing Machine with a List Price

question 143

Multiple Choice

Anchor Company purchased a manufacturing machine with a list price of $100,000 and received a 2% cash discount on the purchase. The machine was delivered under terms free on board (FOB) shipping point, and transportation costs amounted to $5,200. Anchor paid $7,500 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $9,800 for the first year of operations. What is the cost of the machine?

• A)$98,000
• B)$103,200
• C)$120,500
• D)$110,700

Differentiate between cognitive therapy and other therapeutic modalities.

Apply concepts of cognitive therapy to clinical scenarios.

Critique the evidence base supporting cognitive therapy's efficacy.

Appreciate the role of homework and client activity outside of sessions in cognitive therapy.

---

Definitions:

Receiving Report

A document used in businesses to record the receipt of goods from a supplier, detailing quantities and condition of the items.

Merchandise Inventory

Products a business maintains with the intent to sell to consumers as part of its regular operations.

Freight-In

Costs associated with bringing inventory to a business location, typically included in the inventory cost on the balance sheet.

F.O.B. Shipping Point

A shipping term indicating that a buyer is responsible for the goods, including the risk of loss and transportation cost, from the time they leave the seller's premises.