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Mice21 [21]
2 years ago
8

Li Meng purchased a property that had been owned by the same man for more than 40 years. The title search was clean. In the spri

ng, she started seeing traffic on the path to her dock and discovered that the previous owner had always allowed the locals to use his path to get to the lake. What covenant may have been breached
Business
1 answer:
stira [4]2 years ago
6 0

The covenant is against encumbrances.

<h3><u>what is an encumbrance?</u></h3>

A claim made against a piece of property by someone who isn't the owner is called an encumbrance.

  • Encumbrance may affect the property's ability to be transferred and limit its free use until the encumbrance is removed.
  • Real estate is subject to the most prevalent kinds of encumbrances, such as mortgages, easements, and property tax liens.

The previous property owner failed to disclose to Li Meng that there was an easement across the property.

Learn more encumbrance with the help of the following link:

brainly.com/question/14844424?referrer=searchResults

#SPJ4

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Rodriguez Company pays $310,000 for real estate plus $16,430 in closing costs. The real estate consists of land appraised at $21
Sergeeva-Olga [200]

Answer:

Required 1.

Land =  $163,215

Land improvements = $65,286

Buildings =  $97,929

Required 2.

Land  $163,215 (debit)

Land improvements $65,286 (credit)

Buildings $97,929 (credit)

Cash $310,000 (credit)

Explanation:

Allocation of the purchase cost must be made on the bases appraisal value.

Total Appraisal Value =  $215,000 + $86,000 + $129,000

                                    =  $430,000

Land = $215,000 /  $430,000 × $326,430

        = $163,215

Land improvements =  $86,000 / $430,000 × $326,430

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Buildings = $129,000 / $430,000 × $326,430

                = $97,929

6 0
3 years ago
The four underlying assumptions of generally accepted accounting principles are economic entity, monetary unit, periodicity, and
DerKrebs [107]

Answer:

1. Going concern

2. Economic entity

3. Monetary unit

4. Periodicitys

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1. Since Jumbo's Restaurant is planning to close, the assumption of continuity (going concern) is no more applicable. This should be disclosed. Instead asset was still recorded at historical price which is misleading.

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3. Claim Jumpers when reporting the 5 trucks purchased must include a monetary value for them. The assumption of monetary unit states that all items reported on the balance sheet must be expressed in monetary terms.

4. Cobbler's Etc violated the assumption of periodicity which states the financial position of the business must be declared in a particular accounting period. Accounting period can monthly, quarterly, biannually, and yearly. The business should choose and accounting period and ensure financial position is reported for each of them. In this case financial reporting is not consistent with reporting happening after 14 months and before that 18 months.

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Using desk check, talk-throughs, walkthroughs, simulation, and other exercises on a regular basis helps prepare the organization
erma4kov [3.2K]

Answer:

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Using desk check, talk-throughs, walkthroughs, simulation, and other exercises on a regular basis helps prepare the organization for crises and, additionally, helps keep the CM plan up to date.

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