Mobley Company Purchased an Asset with a List Price of $35,000

question 96

Multiple Choice

Mobley Company purchased an asset with a list price of $35,000. Mobley received a 2% cash discount. The asset was delivered under terms FOB shipping point, and freight costs amounted to $700. Mobley paid $1,500 to have the asset installed. Insurance costs to protect the asset from fire and theft amounted to $400 for the first year of operations. Based on this information, the cost recorded in the asset account would be

• A) $36,500.
• B) $36,900.
• C) $35,000.
• D) $35,800.

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Definitions:

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A legal objection that an opponent's point is irrelevant or invalid, while conceding the factual basis of the point.

Special Jurisdiction

The power of a court to hear only certain kinds of cases.

U.S. Constitution

The supreme law of the United States of America, outlining the national framework of government and the fundamental rights of citizens.

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The process of choosing jurors from a pool of candidates to serve on a trial jury, typically involving questioning by attorneys and the judge to ensure impartiality.