1) A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000, would have a cost basis of A. $93,000 B. $90,000 C. $82,000 D. $85,000
2) A company uses the allowance method to account for uncollectible accounts receivables. When the firm writes off a specific customer's account receivable
A. total current assets are reduced
B. total expenses for the period are increased
C. net realizable value of accounts receivable increases
D. there is no effect on total current assets or total expenses