Answer:
D. $2,050,000.
Explanation:
In 2020
Expenditure = 4,000,000
In 2021
Expenditure = 2,050,000 (Change in Design cost is already included)
All the costs incurred to make an asset usable could be capitalized. the change in original construction design is an essential cost and it is incurred before completion / use of city hall. So the cost of 2,050,000 will be added to capital account in 2021.
So the correct option is D. $2,050,000.
<span>Gross profit = $7,080 ($19000-11920)
Increase to percent of gross profits - $11,920/19000 = 62.7%. Profits would increase with this contract or transaction by 62.7%</span>
Answer:
c. Time series analysis
Explanation:
Time series analysis is a type of technique used in statistics to analyse data that are based on time and current happenings. Such data are time and period based.
There are 3 types of time series analysis data.
a. Pooled data.
b. Cross section data.
c. Time series data.
Time series analysis helps to determine seasonal variance, trends and future forecast.
Answer:
Journals :
Land $350,000 (debit)
Building $100,000 (debit)
Mortgage Payable $450,000 (credit)
Explanation:
The Land and Building is Initially measured at cost of acquisition not the fair market value. The cost of Acquisition in this case is the Present Value of the Mortgage Payable used to obtain the Property.
Step 1
Use the Time Value of Money Techniques to find the Present Value of the Mortgage.
Calculation of Present Value of the Mortgage
N = 20 × 12 = 240
P/YR = 12
PMT = - $3,488.85
I = 7 %
FV = $ 0
PV = ?
Using a Financial Calculator to Input the Values as above, the Present Value of the Mortgage will be $450,000.
Step 2
When Recording, apportion the Land and Building costs using their fair market value.
Land $350,000 (debit)
Building $100,000 (debit)
Mortgage Payable $450,000 (credit)