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Andreyy89
3 years ago
15

Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Hard

ing paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $374,000; Building, $1,100,000 and Equipment, $726,000. What value will be recorded for the building?
A. $175,000
B. $950,000
C. $800,000
D. $1,100,000
Business
1 answer:
mojhsa [17]3 years ago
5 0

Answer:

B. 950,000

Explanation:

The value of the building is calculated as the amount of appraisal is $374,000 for Land $1,100,000 for building and $726,000 for equipment which makes a total of $2,200,000 ($374,000 + $1,100,000 + $726,000). The amount of building appraisal is then divided by the total amount of appraisal to calculate the percentage of building appraisal which gives us a percentage of 5% ($1,100,000 / $2,200,000) and then finally this 5% is multiplied by the amount of property cost of Harding which gives us the value of building which is $950,000 ($1,900,000 * 5%).

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Answer:

Yes, the US airline Industry is attractive. Southwest Airline's has a unique business model with an efficient operational strategy.

Explanation:

The most important strategic choices for Southwest Airline is a low-cost operational structure that achieves high returns on capital due to a unique

The unique thing about southwest strategy is, the company has good credit rating which has positioned them strategically compared to its competitors.

The components of Southwest's strategy that are VRIO is as follows

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4. They are deliberate in their branding and public image.

No, it would not be easy to imitate the strategy like the one they employed to mitigate the tragic incident that occurred seven months ago that had one person killed.

Yes, their strategy is sustainable because it is both cost effective, efficient and produces result.

The threats they are likely to face include

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2. They will be at a disadvantage position if pitted against larger airline companies.

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From the foregoing, it is evident that southwest has a sustainable business model that should make them become an international airline

7 0
3 years ago
Which of these types of products usually involves the customer
kiruha [24]

Answer:

Shopping products

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Shopping products usually involves the customer doing comparison shopping as customer like to compare price, quality, offers, discounts etc. There are several websites which help the customer in comparing the products available of various brands and then buying the product. It is helpful in making smart purchase and buying the products which are worth for the money spent. It give complete analysis of product quality and price.

8 0
3 years ago
If a gain of $221000 is realized in the cash sale of a building having a book value of $882000, the total amount reported in the
djyliett [7]

Answer:

$1,103,000

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

For assets disposed, the amount received from the disposal is the amount recorded as an investing activity.

Amount received  - Book value of asset = Gain on disposal

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= $1,103,000

8 0
3 years ago
What you give up to obtain an item is called your
lara [203]
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3 years ago
Land, a building and equipment are acquired for a lump sum of $1,000,000. The market values of the land, building and equipment
sergij07 [2.7K]

Answer:

The answer is option (b). $250,000

Explanation:

Step 1: Determine total market value

The expression for the total market value is;

Total market value=land value+building value+equipment value

where;

land value=$300,00

building value=$600,000

equipment value=$300,000

replacing;

Total market value=(300,000+600,000+300,000)=$1,200,000

Total market value=$1,200,000

Step 2: Determine fraction of the total market value that is equipment

Equipment fraction=equipment value/total market value

where;

equipment value=$300,000

total market value=$1,200,000

replacing;

Equipment fraction=300,000/1,200,000=0.25

Step 3: Determine cost assigned to the equipment

Cost assigned to the equipment=equipment fraction×lump sum

where;

equipment fraction=0.25

lump sum=$1,000,000

replacing;

Cost assigned to the equipment=(0.25×1,000,000)=250,000

Cost assigned to the equipment=$250,000

3 0
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