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Assume that Trader Pete's, an organic food retailer in the United States, recently purchased a new refrigeration system for its Washington, DC, store.Trader Pete's paid $1.3 million for the refrigeration unit and paid an additional $120,000 to modify the unit to meet its specific needs.Trader Pete's paid $55,000 for the transportation and installation of the unit, plus $48,000 for an annual insurance premium for the first year, which begins next month.Finally, assume that Trader Pete's hired a refrigeration technician, who is charged with the maintenance of the unit; that technician's annual salary is $80,000.How much should Trader Pete's record as the acquisition cost of the refrigeration unit?
Dividends Declared
An announcement by a company's board of directors of a dividend payment to shareholders, indicating the amount and payment date.
Dividends Payable
A liability on the balance sheet representing the amount of dividends that a company owes to its shareholders but has not yet paid.
Stock Splits
An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares.
Retained Earnings
The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay off debt.
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