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on august 1, harvey company offered to pay $10,000 for equipment that was advertised as being sold for $20,000 by carrone company. the equipment had a retail value of $23,000 on that day. on august 10, carrone company offered to sell the equipment for $11,900, and harvey company agreed to buy it at that price. at what value will harvey company record the equipment on its books? a.$23,000 b.$10,000 c.$11,900 d.$20,000

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khuranashilpa76

On August 1, Harvey's company offered to pay $10,000 for equipment that was advertised as being sold for $20,000 by the current company $14,700.

Equipment is a tangible long-term asset that benefits a business over several years of use. Computers, trucks, and manufacturing machinery are all examples of equipment. They are tangible because they have a physical form unlike intangible assets (such as patents, trademarks or copyrights) that do not.

Cash paid to buy equipment = $14,700

Retail value of equipment = $23,000

Price offered by Harvey Company on August 1 = $13,000

Price advertised on August 1 by  the seller = $19,000

Harvey company will record the equipment in its books at the price paid i.e $14,700.

The price offered by Harvey company or the price advertised by the seller is not the consideration price at which the transaction took place.

The correct option is a.

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