The following expenditures relating to plant assets were made by Newport Com- pany during the first 2 months of 2012.

1. Paid $7,000 of accrued taxes at the time the plant site was acquired.
2. Paid $200 insurance to cover a possible accident loss on new factory machinery while
the machinery was in transit.
3. Paid $850 sales taxes on a new delivery truck.
4. Paid $21,000 for parking lots and driveways on the new plant site.
5. Paid $250 to have the company name and slogan painted on the new delivery truck.
6. Paid $8,000 for installation of new factory machinery.
7. Paid $900 for a 1-year accident insurance policy on the new delivery truck.
8. Paid $75 motor vehicle license fee on the new truck.
Instructions
(a) Explain the application of the cost principle in determining the acquisition
cost of plant assets.
(b) List the numbers of the transactions, and opposite each indicate the account title to
which each expenditure should be debited.

Xyz corporation has provided the following data concerning manufacturing overhead for july: actual manufacturing overhead incurred $ 69,000 manufacturing overhead applied to work in process $ 79,000 the company's cost of goods sold was $243,000 prior to closing out its manufacturing overhead account. the company closes out its manufacturing overhead account to cost of goods sold. which of the following statements is true? multiple choice manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

Jen left a job paying $75,000 per year to start her own florist shop in a building she owns. the market value of the building is $120,000. she pays $35,000 per year for flowers and other supplies, and has a bank account that pays 5 percent interest. what is the economic cost of jen's business?