Answer: e. None of the above.
Explanation:
Under IFRS, leonard will not recognize this either gain or depreciation as the transfer has taken place. But when Green Corporation sells the equipment then it will have to consider the potential which was generated in respect to the transfer with leonard.
Answer:
Real income has increased by $720 in terms of dollar and 2% in percentage
Explanation:
<em>The real income is determined by adjusting the nominal income for inflation. The consumer price index (CPI) is used to measure the rate of inflation.</em>
R<em>eal income = Nominal income × CPI Base year/ CPI in current year</em>
Real Income = 32000 × 120/125
=$30,720
Change Real income
Change in real income ($) = 30,720 - 30,000
= $ 720
Change in real income (%) = (720/30,000) × 100
= 2%
Real income has increased by $720 in terms of dollar and 2% in percentage
Answer:
$33,540,000
Explanation:
initial investment:
- opportunity cost of land (resale price of land) = $10,700,000
- building cost of the facilities = $21,900,000
- other expenses related to the site (grading) = $940,000
- total $33,540,000
The purchase cost of the land is considered a sunk costs, since it is not relevant now. What is relevant is the price at which the land could be sold at the moment of starting the project.
