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Ksju [112]
1 year ago
15

emily purchased a building to store inventory for her business. the purchase price was $760,000. emily also paid legal fees of $

300 to acquire the building. in march, emily incurred $2,000 to repair minor leaks in the roof (from storm damage earlier in the month) and $5,000 to make the interior suitable for her finished goods.
Business
1 answer:
liq [111]1 year ago
3 0

$572,045 cost basis,

computed as follows:

Purchase price $565,000

Improvements 6,300

Legal fees 745

The cost basis for the building is $572,045

improvement is the technique of aspect transferring from one country to a state considered to be higher, usually via a few motions supposed to bring about that higher kingdom. The concept of development is crucial to governments and corporations, as well as to people. The time period of "improvement" in a preferred manner is "sluggish, piecemeal, however cumulative betterment", which can discuss with both people and societies as an entire.

Learn more about Improvements here

brainly.com/question/13381607

#SPJ4

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Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations fol
erastovalidia [21]

Answer:

1. Using Absorption Costing

Income Statement

Sales    20,000 X $216                             = $4,320,000

Less: Cost of Goods Sold (Note 1)            =($1,240,000)

Gross Margin                                             = $3,080,000

Less: Operating Expenses

Selling and Administrative Expense         = ($560,000)

(Note 2)                                                        

Net Income                                                  = $2,520,000

Note:

  1. Cost of goods Sold = All the direct variable cost + direct fixed cost = Direct materials + Direct Labor + Direct Overhead = $20 +$28 + $6 = $54 per unit, Total = $54 X 20,000 units = $1,080,000 + Fixed cost = $160,000 = $1,240,000
  2. Selling And Administrative Expense = Variable + Fixed, Variable = $18 X 20,000 units = $360,000, Fixed Expenses = $200,000, Total = $560,000

2. Using Variable Statement

Sales    20,000 X $216                             = $4,320,000

Less: Variable Costs

Direct Material $20 X 20,000                    = ($400,000)

Direct Labor  $28 X 20,000                       = ($560,000)

Variable Overhead $6 X 20,000               = ($120,000)

Variable Selling Expense $18 X 20,000    = ($360,000)

Contribution Margin                                     = $2,880,000

Less: Fixed Costs

Fixed Overhead                                            = ($160,000)

Fixed Selling & Administrative                     = ($200,000)

Net Income                                                    = $2,520,000

Note: Under Variable Statement first variable expenses are deducted to get the value of contribution, and then fixed expenses are deducted to get net income, whereas in absorption costing firstly manufacturing expenses are deducted to get gross margin and then operating expenses like selling and administrative expenses are deducted to get the net income.

But Net income is same in both cases.

5 0
3 years ago
Willingness to pay Group of answer choices measures the value that a buyer places on a good. is the amount a seller actually rec
gtnhenbr [62]

Answer:

measures the value that a buyer places on a good.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, etc.

Willingness to pay measures the value that a buyer places on a good or product. Thus, when this value is high, the customer would ultimately buy a product and vice-versa.

5 0
3 years ago
postal express is considering the purchase of a new sorting machine. the sales quote consists of quarterly payments of $37,200 f
Cloud [144]

The five-year sales quote includes quarterly payments of $37,200 at a 7.6% interest rate. The price of the acquisition is $614,184.40.

<h3>Do you mean by PMT payment?</h3>

PMT stands for "payment," therefore the name of the function. A PMT method can estimate your monthly payments, for instance, if you are looking for a $30,000 car loan with a two-year term and an annual interest rate of 7%.

<h3>In the fv formula, what is PMT?</h3>

PV = present value, and FV=PMT(1+i)((1+i)N - 1)/i Future Value (FV) Payment per period (PMT) I = percent per period interest rate N is the number of cycles.

Quarterly Payment = PMT = $37,400

Interest Rates = r = 7.6% per year = 0.076 per year = 0.076 / 4 = 0.019 per quarter

Number of years = 5 years

Number of Payment = n = 5 years x 4 quarters per year = 20 quarters

PV = PMT x (1 - [1 / (1 +r)^n]) / r

PV = $37,200 x (1 - [1 / (1 +0.019)^20]) / 0.019

PV = $614,184.40

Learn more about PMT: brainly.com/question/12890163

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5 0
1 year ago
Nick has a policy that the insurer can cancel when he turns 65. Which type of policy is it?
Shkiper50 [21]

Answer: Conditionally renewable

Explanation:

Conditionally renewable is the type of policy offered by companies to their clients to not renew upon reasons that are stated in the contract.

8 0
3 years ago
Stone Pine Corporation, a calendar year taxpayer, has ending inventory of $160,000 on December 31, 2018. During the year, the co
bezimeni [28]

Answer:

The answer is $215,000

Explanation:

Cost of goods sold equal:

Opening/beginning inventory plus purchases minus closing/ending inventory

To find beginning inventory at January 1, 2018, lets rearrange the formula:

Cost of goods sold minus plus purchases plus closing/ending inventory.

Cost of sales is $470,000

Purchases is $415,000

Ending inventory is $160,000

Therefore, beginning inventory at January 1, 2018 is

$470,000 - $415,000 + $160,000

=$215,000

3 0
3 years ago
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