Author Question: Cranberry Company purchased two pieces of equipment from a Canadian vendor for 400,000. If the ... (Read 5240 times)

strangeaffliction · **on:** Jul 5, 2018

Cranberry Company purchased two pieces of equipment from a Canadian vendor for 400,000. If the assets had been purchased separately, the company would have paid 90,000 for the first piece of equipment and 360,000 for the second piece of equipment.

What amount should be recorded for the FIRST piece of equipment?
A) 80,000
B) 90,000
C) 360,000
D) 320,000

Question 2

The lower of cost or market is a method of inventory valuation.
a. True
b. False

Indicate whether the statement is true or false