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3 years ago

The capitalized cost of land excludes:

Business

1 answer:

svet-max [94.6K]3 years ago

4 0

Answer:

(D) Property taxes for the first year owned.

Explanation:

Capitalized cost is an added expense of a fixed asset. This is not the price paid for an asset but an additional expense incurred overtime in the form of depreciation or amortization. Excluded in this cost is the property taxes for the first year owned. It is included in the cost basis of the asset.

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The Petit Chef Co. has 7 percent coupon bonds on the market with 9 years left to maturity. The bonds make annual payments and ha

PilotLPTM [1.2K]

Answer:

The YTM is 6.45%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $1,000 x 7% = $70

Selling price = P = $1,038.50

Number of payment = n = 9 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $70 + ( $1,000 - $1,038.5 ) / 9 ] / [ (1,000 + $1,038.5 ) / 2 ]

Yield to maturity = [ $70 - $4.28 ] / $1,019.25 = $65.72 /$1,019.25 = 0.0645 = 6.45%

7 0

3 years ago

Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that w

AleksandrR [38]

Answer:

Explanation:

a. Break even in unit sales = (Fixed expenses ) ÷ (Contribution margin per unit)

= $1,890,000 ÷ ($14,000 - $9,800)

= 450 units

b. Margin of safety = Expected sales - break even sales

= ($14,000 × 600) - ($14,000 × 450)

= $2,100,000

Contribution margin = Sales - Variable cost

= ($14,000 × 600) - ($9,800 × 600)

= $2,520,000

Profit before earning and tax = Contribution margin - Annual fixed cost

= $2,520,000 - $1,890,000

= $630,000

c. Degree of operating leverage = Contribution ÷ Profit before earning and tax

= $2,520,000 ÷ $630,000

= 4

d. Loss on Net operating income = (Sales) - (Variable cost) - Fixed expenses

=($11,000 × 600) - ($9,800 × 600) - $1,456,000

= -$736,000

5 0

3 years ago

The tax laws allow taxpayers to use which of the following methods for accounting for research and experimentation costs paid or

Anettt [7]

Answer:

Explanation:

Another definition:

It is the purchase price of an asset + the costs of operating the asset

4 0

3 years ago

Assume that consumers' incomes and the number of sellers in the market for good A (a normal good) both decrease. Based upon this

Vadim26 [7]

Answer:

Quantity will Increase

Explanation:

As we know that when market is in equilibrium so the demand curve should be intersected the supply curve. At the time when there is an increase in suppliers so supply curve shift rightward due to which the consumer income would increase and this result in more demand. So the demand could be shift in rightward

So here the price should be the same but the quantity is increased

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3 years ago

Colin presents his findings in class. His topic -- stories addressing effects of white flour on a person's health – features sci

Jet001 [13]

Answer:

Analogy is defined as a comparison between two things with an aim of clarification and explanation

- (D) A firm director describes the differences between documentary and fictional films to a group of people.

Definition means of a text, word,action or concept.

- (B) A professor asks his students to read the poem as if they are reading poetry for the very first time.

Visual Demonstration is an illustrative matter, for example a model, film or a slide designed to supplement spoken or written information in order to be understood easily.

- (A) The owner of a local coffee shop hangs up a map showing the countries the shop purchases it's coffee from.

4 0

3 years ago