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LenKa [72]
3 years ago
12

Chico Company paid $560,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the

following estimates of the market values of the assets if they had been purchased separately: Office furniture, $140,000; Building, $460,000, and Land, $110,000. Based on this information, what is the cost that should be allocated to the office furniture? (Round your intermediate percentages to four decimal places: ie .054231 = 5.42%.)
Business
1 answer:
s2008m [1.1K]3 years ago
3 0

Answer: $110,432

Explanation:

The cost allocated to the Office furniture is the percentage of total appraised cost * the price paid for the basket purchase because it shows what proportion of the Basket Purchase should be ascribed to the Office furniture.

Total Appraised value = 140,000 + 460,000 + 110,000

= $710,000

Office furniture Proportion = 140,000/710,000

= 0.1971830985

=0.1972

Amount to be allocated to Office furniture = 0.1972 * 560,000

= $110,432

$110,432 should be allocated to the office furniture.

= $110,422.

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Lamar Company is considering a project that would have an eight-year life and require a $2,400,000 investment in equipment. At t
Arada [10]

Paybackperiod=Intial investment / Net annual cash inflow

project's payback period is 4.5 years.

<h3>What is net operating income?</h3>
  • Before deducting any expenditures for financing or taxes, net operational income assesses the profitability of an income-producing asset.
  • Subtract all property-related running costs from all income earned at the property to arrive at NOI.
  • A property owner can manipulate the operational expenditures included in the NOI statistic by delaying or accelerating particular revenue or expense elements.
  • Capital expenses are excluded from the NOI statistic.
  • A property owner can use NOI to determine whether the cost of owning and maintaining a property outweighs the benefits of renting it out.

To learn more about net operating income, refer to the following link:

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5 0
2 years ago
Describe the basic rights of common stockholders. What are the key differences between common and preferred stock?
BARSIC [14]

Answer:

Some rights of common stockholders are given below.

Voting power on major issues.

Ownership in a portion of the company.

The Right to transfer ownership.

Right to receive declared Dividends.

Opportunity to inspect corporate books, minutes file and other records.

The right to sue for wrongful acts.

Right to attend AGM.

Differences between common and preferred stock

Preferred stock have no voting right while common stock holders have voting right.

When interest rates rise, the value of the preferred stock declines, and vice versa.  With common stocks, however, the value of shares is regulated by demand and supply of the market participants.

Common stockholder has right to participate in net asset of company in case of winding up. Preferred stock holder has no such right.

Company profitability have direct effect on wealth of common stockholder but not of preferred stock holder.

7 0
4 years ago
Acme Company has variable costs equal to 30% of sales. The company is considering a proposal that will increase sales by $12,000
mina [271]

Answer:

$0

Explanation:

The net income is the difference between the sales and total cost which comprises of the variable cost and fixed cost. The sales and variable cost are dependent on the number of units sold.

Let

u = number of units

s = selling price per unit

v = variable cost per unit

F = Fixed cost

I = Net income

I = su - F - vu

but vu = 0.3su

Hence

I = su - 0.3su - F = 0.7su - F

Given that the proposal will increase sales by $12,000,

New sales = su + 12000          ( in $)

and total fixed costs by $8,400

New fixed cost = F + 8400

New variable cost = 0.3( su + 12000) = 0.3su + 3600

New net income = su + 12000 - 0.3su - 3600 - F - 8400

= 0.7su - F

New net income is same as the old net income hence no increase.

4 0
4 years ago
A principal real estate broker is responsible to review and initial all documents written by his associated real estate brokers
slamgirl [31]

Answer:

The correct answer is <em>7 banking days from the date the document was accepted, rejected or withdrawn</em>.

Explanation:

A real estate agent is a natural person who is dedicated to providing mediation, advice and management services in real estate transactions related to: the sale, rental, exchange or transfer of real estate and their corresponding rights, including the constitution of these rights.

In each country, the activity is governed by a particular law, so far there is no law that regulates real estate issues worldwide, despite the fact that many real estate agents carry out transactions in countries other than their headquarters.

8 0
3 years ago
Jane Doe, who has substantial personal wealth and income, is considering the possibility of starting a new business in the chemi
Kaylis [27]

Answer: The correct answer is "S corporation, to gain some tax advantages and also to obtain limited liability. ".

Explanation: S corporation is the legal form of business organization that probably adapts best to her needs because it would be a great advantage to have tax benefits and in turn limit the liability only to the capital contributed, this means that to meet your obligations you only respond with capital from the company and not with Jane's own assets.

7 0
3 years ago
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