Question
Anchor Company purchased a manufacturing machine with a list price of $96,000 and received a 2% cash discount on the purchase. The machine was delivered
Anchor Company purchased a manufacturing machine with a list price of $96,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $4,400. Anchor paid $6,300 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $8,200 for the first year of operations. What is the cost of the machine?
Multiple Choice
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$98,480
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$112,980
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$104,780
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$94,080
The balance sheet of Flo's Restaurant showed total assets of $520,000, liabilities of $168,000 and stockholders equity of $402,000. An appraiser estimated the fair value of the restaurant assets at $615,000. If Alice Company pays $825,000 cash for the restaurant, what is the amount of goodwill?
Multiple Choice
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$210,000
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$305,000
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$423,000
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$378,000
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