Question

A

company credit card was used to purchase a new $250 computer
monitor and a $125 cartidge for the office copier. the company
capitalizes all equipment purchases over $150. Sales tax, at 8%,
was added

Answer 1

The subject of this question is Business.

Step-by-step explanation:

The subject of this question is Business because it involves understanding how credit cards are used for purchases and how companies handle their expenses.

Answer 2

Calculate the total cost of a computer monitor and cartridge with an 8% sales tax and then determine which items will be capitalized based on a $150 threshold.

Step-by-step explanation:

The student's question involves calculating the total cost of items purchased with a company credit card including sales tax, and understanding company policies for capitalizing equipment purchases. To solve this, we must calculate the total cost of each item with the added sales tax, and then determine which items should be capitalized based on the company's capitalization policy threshold. The company capitalizes all equipment purchases over $150.

First, for the computer monitor priced at $250, we calculate the sales tax as follows:

• Monitor: $250 × 0.08 (sales tax) = $20
• Total cost for monitor: $250 + $20 = $270

Since the total costs exceed $150, the monitor will be capitalized.

Next, for the cartridge priced at $125, the calculation is:

• Cartridge: $125 × 0.08 (sales tax) = $10
• Total cost for cartridge: $125 + $10 = $135

The cartridge will not be capitalized as its total cost is below $150.