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solniwko [45]
2 years ago
13

To prepare for the construction of its new headquarters, Baker Co. purchased a 500-acre plot of land on August 5, Year 1. Baker

purchased the land using 25% cash and financed the balance using a 9% loan from First Bank. The company began preparation of the land for the construction of the building on January 30, Year 2. Which section of the authoritative guidance explicitly states whether the Year 1 interest on the bank loan qualifies for capitalization
Business
1 answer:
leonid [27]2 years ago
4 0

Answer:

FASB ASC 835-20-15-8

Explanation:

This section explicitly states that in order for interests to qualify for interest capitalization, the assets purchased through the loan must be getting ready for its intended use. E.g. if you want to capitalize the interests on the land, you must carry out activities necessary to prepare it for its intended use. Or if you purchase a machinery, you must be installing it in order to get it ready to produce.

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The SBA is a source of assistance that provides small businesses with the following
Colt1911 [192]

Answer:

  • government contracting
  • advocacy
  • entrepreneurial development
  • access to capital

Explanation:

SBA is a US government agency whose core mandate is to support the growth of small businesses. The Small Business Association(SBA),  promotes economic growth by providing useful resources and information to help them start and develop small businesses.

The  SBA supports the advancement of small businesses in the following ways.

  1. Education and training,
  2. Providing information and links to affordable credit
  3. Connecting to government contracts
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7 0
2 years ago
Last year both a borrower and a lender expected an inflation rate of 3 percent when they signed a long-term loan agreement with
valentina_108 [34]

Answer:

B. The lender would benefit.

Explanation:

Based on the information provided within the question it can be said that in this scenario the one who would benefit from a lower inflation rate would be the lender. That is because by there being a lower inflation rate it means that the money that the borrower needs to pay back the loan does not have the buying power he predicted it would have when he borrowed it. Meaning that he would need to pay more money to the lender than originally anticipated.

4 0
3 years ago
Read 2 more answers
The Mary Company primarily sells dishes, and recently purchased a cardboard box company. Mary's new cardboard box division has n
fgiga [73]

Answer: $1.50

Explanation:

Based on the information given in the question, we are informed that the variable cost of each box is $1.50 and usually has a contribution margin of $0.80 per box.

We should note that the minimum transfer price that the box division should find as acceptable will be the relevant cost. In this case, the relevant cost is given as $1.50 pee box and therefore, the minimum transfer price will be $1.50.

8 0
2 years ago
Institutional advertising:_________a) tries to stimulate primary demand rather than selective demand. b) involves no media costs
alina1380 [7]

Answer:

c) tries to develop goodwill for a company or even an industry.

Explanation:

Institutional Advertising is an advertising approach - attempting to promote a company, corporation, brand, business, institution, organisation entity. It's direct aim is not to focus on selling goods & services. It rather focuses on building a goodwill, rapport between the entity & the potential customers, associators. It is usually done via community outreach programmes, to address community & social image building largely.

6 0
3 years ago
Rayna provides a significant amount of information to others across a wide array of products, including durables and nondurables
Nonamiya [84]

Answer:

market maven

Explanation:

Market maven -

The term is associated with the person, who has the complete knowledge of the goods and services and the market , is referred to as a market maven.

A market maven has a lot of connection with various people and is very well - versed on the current state of the market , and has some discreet information which a normal person can never get access to .

The very so famous market maven are - George Soros , John Bogle and Warren Buffett.

Hence , from the given scenario of the question,

The correct answer is market maven .

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